Which of the following is an asset use transaction?
A)Purchased machine for cash.
B)Recorded supplies expense at the end of the period.
C)Invested cash in an interest earning account.
D)Accrued salary expense.

Question

Quizplus · Accepted Answer

Recording supplies expense at the end of the period is an asset use transaction that decreases assets (supplies) and decreases equity (supplies expense decreases retained earnings). Purchasing a machine for cash and investing cash in an interest earning account are asset exchange transactions. Accruing salary expense is a claims exchange transaction.

Which of the Following Is an Asset Use Transaction