MONETARY ITEM Meaning and
Definition
-
A monetary item refers to any asset or liability that has a fixed or determinable monetary value and is readily convertible into a known amount of money. It is a financial term used to describe any item that can be measured and expressed in terms of its monetary worth. These items are typically recorded on a company's balance sheet and are primarily related to financial transactions.
Monetary items consist of both assets and liabilities and can include cash and cash equivalents, such as bank balances, short-term investments, and marketable securities. Additionally, accounts receivable, accounts payable, loans payable, and other forms of debt or credit fall under the category of monetary items.
The value of monetary items is stated in a specific currency, such as the U.S. dollar, euro, or yen. Changes in the purchasing power of money, inflation, or currency fluctuations can impact the value of monetary items over time.
The recognition, valuation, and measurement of monetary items are governed by accounting standards and principles, ensuring accurate financial reporting. Companies must disclose the nature and categorization of monetary items in their financial statements to provide transparency and assist in making informed decisions about their financial health and performance.
Overall, monetary items represent the financial resources and obligations of an entity that can be readily translated into a numerical value, serving as key indicators of a company's liquidity, solvency, and overall financial standing.
Common Misspellings for MONETARY ITEM
- nonetary item
- konetary item
- jonetary item
- minetary item
- mknetary item
- mlnetary item
- mpnetary item
- m0netary item
- m9netary item
- mobetary item
- mometary item
- mojetary item
- mohetary item
- monwtary item
- monstary item
- mondtary item
- monrtary item
- mon4tary item
- mon3tary item
- monerary item
Etymology of MONETARY ITEM
The term "monetary item" does not have a specific etymology as it is a combination of two commonly used words in the English language.
"Monetary" derives from the Latin word "monēta", which means "coin" or "money". The Latin word itself originated from the name of the Roman mint, "Moneta", which was located on the Capitol in Rome. Over time, "monetary" has come to refer to anything related to money or currency.
"Item" comes from the Latin word "item", meaning "also" or "likewise". In English, it typically refers to an individual thing or element within a larger collection or list.
Therefore, "monetary item" simply refers to a specific thing or element related to money or currency, with no distinct etymology of its own.
Infographic
Add the infographic to your website:
