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

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

An asset source transaction increases assets and can either increase liabilities (in the case of borrowing cash)or equity (in the case of issuing stock or earning revenue).It may or may not affect revenue and net income.If the asset that increases is cash,it is reported as a cash inflow on the statement of cash flows,and can be either an operating or a financing activity.

Which of the Following Could Represent the Effects of an Asset