When similar assets are exchanged and no cash is received or given up, there is no entry needed.

Name: When similar assets are exchanged and no cash is received or given up, there is no entry needed.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

Even when similar assets are exchanged without cash being involved, an entry is needed to record the acquisition of the new asset and the disposal of the old asset, reflecting their fair market values and recognizing any gain or loss on the exchange.

When Similar Assets Are Exchanged and No Cash Is Received