Which of the following correctly shows the effect of Raymond's purchase of the copyright on the financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following correctly shows the effect of Raymond's purchase of the copyright on the financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Purchasing the copyright decreases assets (cash) and increases assets (copyright), resulting in no net affect on assets. It is reported as a cash outflow for investing activities.

Which of the Following Correctly Shows the Effect of Raymond's