CAF-6 · Chapter 4 · Question 3 of 15
Which of the following is classified as a 'Monetary Item' under IAS 21?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Trade Receivables
Explanation
Monetary items are units of currency held and assets/liabilities to be received/paid in a fixed or determinable number of units of currency. Trade receivables and lease liabilities are monetary, while PPE and inventory are non-monetary.
More IAS 21 Foreign Currency Transactions MCQs
- Q5A company holds an investment in land in a foreign country, measured at historical cost in the foreign currency. At the reporting date…
- Q6Exchange differences arising on the settlement of monetary items should be recognized in:
- Q7Which of the following is a primary indicator for determining an entity's functional currency?
- Q8When an entity's functional currency changes, the entity shall:
- Q9Presentation currency is defined as: