Which of the following transactions is an asset source transaction?
A) acquired office supplies by signing a short-term note payable
B) paid cash to purchase land
C) paid cash for operating expenses
D) paid cash dividends to owners

Question

Quizplus · Accepted Answer

An asset source transaction increases total assets and total claims. Acquiring office supplies by signing a note payable increases assets (supplies) and liabilities (note payable).

Which of the Following Transactions Is an Asset Source Transaction