A transaction that decreases cash and decreases 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 use transaction is a transaction that involves a decrease in assets, such as cash, and a decrease in liabilities, such as notes payable. This type of transaction indicates that the company used its cash to pay off a portion of its outstanding debt.

A Transaction That Decreases Cash and Decreases Notes Payable Is