Entity A undergoes a transaction in which one asset increases by the amount that another asset decreases. Should this be considered income?
A) Yes
B) No

Question

Quizplus · Accepted Answer

This scenario describes an exchange or reallocation of assets within Entity A, not the generation of income. Income typically involves an increase in economic benefits, such as receiving cash or other assets, not merely shifting resources internally.

Entity a Undergoes a Transaction in Which One Asset Increases