Which of the following could represent the effects of an asset exchange transaction on a company's financial statements?

Question

Quizplus · Accepted Answer

An asset exchange transaction involves the exchange of one asset for another. This would only affect the asset side of the balance sheet, and there would be no impact on the income statement or cash flow statement. Therefore, option A (increase in one asset and decrease in another asset) is the only possible choice.

Which of the Following Could Represent the Effects of an Asset