Which of the following would not describe the effects of an asset source transaction on the elements of a company's financial statements?

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

Question

Which of the following would not describe the effects of an asset source transaction on the elements of a company's financial statements?

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

Quizplus · Accepted Answer

An asset source transaction is any transaction that results in a net increase in assets.It could be accompanied by an increase in liabilities (as in the case of borrowing cash),an increase in equity with no effect on the income statement (as in the case of issuing common stock),or an increase in equity that does increase net income (as in the case of earning revenue).It could be reported as either a financing activity or an operating activity on the statement of cash flows.

Which of the Following Would Not Describe the Effects of an Asset