During the current accounting period,O'Hare Company paid $2,300 for selling and administrative expenses.Payment of cash for selling and administrative expenses is:
A) An asset exchange transaction.
B) An asset source transaction.
C) An asset use transaction.
D) A claims exchange transaction.

Question

Quizplus · Accepted Answer

Payment of cash for selling and administrative expenses represents a decrease in cash, which is an asset. Since the expense has been incurred, it is considered an asset use transaction. Therefore, option C is the correct choice.

During the Current Accounting Period,O'Hare Company Paid $2,300 for Selling