When nonmonetary assets are traded in an exchange that lacks commercial substance and no cash is received, any loss is recognize

Question

kolezko [41]

3 years ago

6

When nonmonetary assets are traded in an exchange that lacks commercial substance and no cash is received, any loss is recognize

d immediately.a. True
b. False

Business

1 answer:

Pavlova-9 [17] · Answer 1 · 2021-12-27T02:14:16+03:00

Answer:

The correct answer is letter "A": True.

Explanation:

Nonmonetary assets are objects a firm possesses in which cash value is complicated to determine for accounting purposes. The value of those assets may vary with time in front of different economic scenarios. When these types of assets are sold in markets where there is few to no liquidity and the calculated amount for the object is not transferred, the loss is recognized as it happens.