Surf City Software Company develops new surf forecasting software. It sells the software to Microsoft in exchange for 1,000 shares of Microsoft common stock. Surf City Software has exchanged a ________ asset for a ________ asset in this transaction.

Question

Quizplus · Accepted Answer

Surf City Software exchanged a real asset (the software, which is an intangible asset but considered real because it is a product of the company's intellectual property and effort) for a financial asset (the shares of Microsoft stock).

Surf City Software Company Develops New Surf Forecasting Software