Alibaba Company reported the following assets in the statement of financial position: Cash in bank 2,000,000 Patent 1,000,000 Accounts receivable 4,000,000 Advances to employees 200,000 Inventory 1,500,000 Advances to supplier 400,000 Financial asset at fair value 500,000 Prepaid expenses 100,000 In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary asset? a. 6,200,000 b. 6,600,000 c. 6,700,000 d. 7,700,000
Alibaba Company reported the following assets in the statement of financial position: Cash in bank 2,000,000 Patent 1,000,000 Accounts receivable 4,000,000 Advances to employees 200,000 Inventory 1,500,000 Advances to supplier 400,000 Financial asset at fair value 500,000 Prepaid expenses 100,000 In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary asset? a. 6,200,000 b. 6,600,000 c. 6,700,000 d. 7,700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alibaba Company reported the following assets in the statement of financial position:
Cash in bank 2,000,000
Patent 1,000,000
Accounts receivable 4,000,000
Advances to employees 200,000
Inventory 1,500,000
Advances to supplier 400,000
Financial asset at fair value 500,000
Prepaid expenses 100,000
In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary asset?
a. 6,200,000
b. 6,600,000
c. 6,700,000
d. 7,700,000
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