8. When computing information on a constant peso basis, which of the following is classified as nonmonetary?

2 points

Obligation under warranty

Accrued expense

Unamortized discount on bonds payable

Refundable deposit

9. When computing information on a constant peso basis, which of the following is classified as nonmonetary?

2 points

Cash surrender value

Long-term receivable

Accrued loss on firm purchase commitment

Inventory

10. When computing information on a constant basis, which of the following is classified as monetary?

2 points

Goodwill

Equipment

Patent

Allowance for doubtful accounts

11. During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power loss will be recognized if the account is a:

2 points

Monetary asset

Monetary liability

Nonmonetary asset

Nonmonetary liability

12. During a period of deflation, an entity would have the greatest gain in general purchasing power by holding:

2 points

Cash

Property, plant and equipment

Accounts payable

Mortgage payable

13. During a period of deflation, in which a liability account balance remains constant, which of the following occurs?

2 points

A purchasing power loss if the item is a nonmonetary liability.

A purchasing power gain if the item is a nonmonetary liability.

A purchasing power loss if the item is a monetary liability.

A purchasing power gain if the item is a monetary liability.

14. During a period of inflation in which a liability account balance remains constant, which of the following occurs?

2 points

A purchasing power loss if the item is a nonmonetary liability.

A purchasing power gain if the item is a nonmonetary liability.

A purchasing power loss if the item is a monetary liability.

A purchasing power gain if the item is a monetary liability.

15. During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power gain will be recognized if the account is a:

2 points

Monetary liability

Monetary asset

Nonmonetary liability

Nonmonetary asset