Recognition of revenue from sale of finished goods is:
A) An asset use transaction.
B) An asset exchange transaction.
C) An asset source transaction.
D) A claims exchange transaction.

Question

Quizplus · Accepted Answer

Recognition of revenue from the sale of finished goods is considered an asset source transaction because it results in an increase in assets (typically cash or accounts receivable) without a direct increase in liabilities, thereby increasing the company's equity through earnings.

Recognition of Revenue from Sale of Finished Goods Is