Which of the following describes the effects of an asset use transaction on a company's financial statements?

Question

Quizplus · Accepted Answer

An asset use transaction is one that decreases a business's assets and increases either liabilities or equity. An asset use transaction may or may not affect expenses. If the asset account decreased is cash, there will be an effect on cash flows. Therefore, any of the given models may represent an asset use transaction.

Which of the Following Describes the Effects of an Asset