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