Question

    ……. Represent the units of currency held and assets

    and liabilities to be received or paid in a fixed or determinable number of units of currency.
    A Non-monetary items Correct Answer Incorrect Answer
    B Monetary Items Correct Answer Incorrect Answer
    C Cash flows from investing activities Correct Answer Incorrect Answer
    D Cash flows from financing activities Correct Answer Incorrect Answer
    E Cash flows from operating activities Correct Answer Incorrect Answer

    Solution

    Monetary items - units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. a.       The essential feature of a monetary item is a right to receive (or an obligation to deliver) a fixed or determinable number of units of currency. Examples include:     i.      pensions and other employee benefits to be paid in cash;     ii.      provisions that are to be settled in cash; and  cash dividends that are recognised as a liability

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