Which of the Following Items Will Be Regarded as a Monetary

question 5

Multiple Choice

Which of the following items will be regarded as a monetary item when applying the definition provided in AASB 121 The Effects of Changes in Foreign Exchange Rates?

• A) property, plant and equipment.
• B) accounts receivable.
• C) land and buildings.
• D) inventories.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Straight-Line Depreciation

A way of distributing the financial burden of a tangible asset over its lifespan in equal yearly portions.

Initial Investments

The initial amount of money invested in a project or business to cover startup costs or to purchase fixed assets.

Income Taxes

Income taxes are taxes levied by governments on individuals and corporations based on their net income or profit within a financial year.