Financial Reporting and Changing Prices
      1. What are the two methods of attempting to cope with the problems created by changing price levels?
      2. Define monetary assets.  Give an example of a monetary asset.
      3. Define nonmonetary assets. Give an example of a nonmonetary asset.
      4. Define monetary liabilities. Most liabilities are monetary. Why?  Give an example of a nonmonetary liability and explain why it is not monetary.
      5. Are current assets and monetary assets the same?
      6. If an entity holds monetary assets during a period of increasing prices, what occurs? Why?
      7. If an entity holds a monetary liability during a period of increasing prices, what occurs? Why?
      8. What are purchasing power gains and losses?  Under what conditions do they occur and how are they to be reported?

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