Which of the following are examples of nonmonetary items?

• A. Cash, accounts receivable
• B. Inventories, property, plant, and equipment
• C. Accounts payable, notes payable
• D. Bank deposits, bonds payable

Answer: (B)

Nonmonetary items are assets or liabilities that do not have a fixed dollar value and are not cash or cash equivalents. They often include physical items or resources that may be valued based on their utility or effort to generate future economic benefits, rather than their immediate cash value.

In this scenario, inventories, property, plant, and equipment fit the definition of nonmonetary items perfectly. Inventories are goods available for sale, and their value can fluctuate based on market conditions, turnover rates, and other factors. Likewise, property, plant, and equipment are tangible assets used in the operations of a business, and their value is determined by various factors such as depreciation, market value, and potential for future economic benefits.

The other options listed include cash and various types of receivables or payables, all of which are considered monetary items because they can be directly measured in terms of currency and easily converted to cash. Thus, the examples in the correct answer highlight the nonmonetary aspects that distinguish them from the monetary items found in the other choices.