In comparison to the current/noncurrent method,the monetary/nonmonetary method
A)differs substantially with regard to the treatment of inventory.
B)classifies accounts on the basis of similarity of attributes rather than the similarity of maturities.
C)differs substantially with regard to the treatment of inventory and classifies accounts on the basis of similarity of attributes rather than the similarity of maturities.
D)none of the options

Question

Quizplus · Accepted Answer

The monetary/nonmonetary method differs from the current/noncurrent method primarily in two ways: it treats inventory differently and classifies accounts based on the similarity of their attributes (e.g., monetary vs. nonmonetary) rather than their maturities.

In Comparison to the Current/noncurrent Method,the Monetary/nonmonetary Method