At the balance sheet date, which of the following statements is TRUE?
A)Monetary items are translated using the exchange rate at the balance sheet date. Any resulting foreign exchange gain or loss is recorded in income.
B)Monetary items are translated using the exchange rate at the balance sheet date. Any resulting foreign exchange gain or loss is recorded in other comprehensive income.
C)Non-Monetary items are translated using the exchange rate at the balance sheet date. Any resulting foreign exchange gain or loss is recorded in income.
D)Non-Monetary items are translated using the exchange rate at the balance sheet date. Any resulting foreign exchange gain or loss is recorded in other comprehensive income.

Question

Quizplus · Accepted Answer

Monetary items are assets and liabilities that are fixed or determinable in a fixed unit of currency. Examples of monetary items are cash, accounts receivable, accounts payable, and short-term investments. Non-monetary items, on the other hand, are assets and liabilities that are not fixed or determinable in a fixed unit of currency. Examples of non-monetary items are inventory, property, plant, and equipment, and intangible assets. As per the accounting standard, monetary items are translated using the exchange rate at the balance sheet date, and any resulting foreign exchange gain or loss is recorded in income. Therefore, option A is correct.

At the Balance Sheet Date, Which of the Following Statements