Which of the following could represent the effects of an asset exchange transaction on a company's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following could represent the effects of an asset exchange transaction on a company's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

An asset exchange transaction increases one asset and decreases another, so it does not affect total assets, liabilities or equity. It does not affect the income statement, and can be reported as a cash inflow or outflow on the statement of cash flow as either an operating or an investing activity.

Which of the Following Could Represent the Effects of an Asset