A nonmonetary exchange has commercial substance if ________.
A) future cash flows change as a result of the exchange transaction
B) dissimilar assets are exchanged
C) the economic position of the parties does not change as a result of the exchange transaction
D) only similar assets are exchanged and those assets will continue to be utilized in a commercial enterprise

Question

Quizplus · Accepted Answer

A nonmonetary exchange has commercial substance if the future cash flows change as a result of the exchange transaction, indicating that the exchange will significantly affect the financial position or operations of the entities involved.

A Nonmonetary Exchange Has Commercial Substance If ________