Monetary Assets and non-monetary assets:
Monetary assets are the assets whose value can be convertible easily into fixed amount of cash. Example: Cash,
The asset which does not have fixed or stated cash value exchange is referred as non-monetary assets. However, this cash value depends on the economic conditions. Example: Property, plant and equipments, inventory.
Monetary liabilities and non monetary liabilities:
Monetary liabilities are the obligations that are payable in a fixed amount of money which does not fluctuate at the time of inflation or economic conditions. Example: Accounts payable
Non-monetary liabilities are the obligations which are payable in terms of goods and services, but not in terms of money. Example: Deferred income.
To explain: The difference between monetary and non-monetary assets and liabilities.
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Intermediate Accounting
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