A business transaction creating an inflow of net assets resulting from the sale of goods or services is a(n):
A) expense transaction.
B) income transaction.
C) cash disbursement.
D) capital transaction.

Question

Quizplus · Accepted Answer

An income transaction is a business transaction that creates an inflow of net assets resulting from the sale of goods or services. Thus, option B is correct. Option A is incorrect because an expense transaction is a business transaction that results in an outflow of net assets. Option C is incorrect because cash disbursed is an outflow of cash, not an inflow. Option D is incorrect because a capital transaction is a business transaction that involves the purchase or sale of long-term assets or investment in the company, resulting in a change in the company's capital structure.

A Business Transaction Creating an Inflow of Net Assets Resulting