A transaction that increases cash and increases notes payable is a/an
A) claims exchange transaction.
B) asset source transaction.
C) asset use transaction.
D) asset exchange transaction.

Question

Quizplus · Accepted Answer

An asset source transaction is one where an asset (in this case, cash) increases and a liability (in this case, notes payable) also increases. This indicates that the company has borrowed money and received cash, thus increasing its assets and liabilities simultaneously.

A Transaction That Increases Cash and Increases Notes Payable Is