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

Question

Quizplus · Accepted Answer

An asset exchange transaction is one that increases one asset account and decreases another, resulting in no net change in assets. There are no changes to the company's liabilities and equity either. If one of the asset accounts affected is cash, there will be an effect on cash flows.

Which of the Following Could Describe the Effects of an Asset