Which of the following is an asset exchange transaction?
A)Issued common stock
B)Accrued salary expense at the end of the accounting period
C)Collected cash on accounts receivable
D)Earned cash revenue for services provided

Question

Quizplus · Accepted Answer

Collecting cash on accounts receivable is an asset exchange transaction because it involves the exchange of an asset (accounts receivable) for another asset (cash). A is incorrect because issuing common stock is a financing transaction, B is incorrect because accruing salary expense is a liability transaction, and D is incorrect because earning cash revenue is a revenue transaction.

Which of the Following Is an Asset Exchange Transaction