Which of the following is an example of a non-monetary item?

Fixed assets are indeed classified as non-monetary items. Non-monetary items are assets that do not have a fixed value in terms of currency and are typically not cash or cash equivalents. They often include physical assets such as property, plant, and equipment, which are used in the production of goods and services and are subject to depreciation over time.

In contrast, cash, short-term investments, and accounts receivable are all considered monetary items. Cash is the most liquid asset, while short-term investments can quickly be converted to cash. Accounts receivable represent amounts owed to a business that are expected to be received in cash, indicating their direct monetary value.

Understanding the distinction between monetary and non-monetary items is crucial in financial reporting, as it affects how these items are presented and valued in the financial statements. Non-monetary items like fixed assets require different considerations in terms of impairment testing, depreciation, and asset valuation compared to monetary items.