Which of the following is an asset use transaction?
A)Purchased machine for cash.
B)Recorded insurance expense at the end of the period.
C)Invested cash in an interest earning account.
D)Accrued salary expense at the end of the period.

Question

Quizplus · Accepted Answer

Recording insurance expense at the end of the period is an asset use transaction that decreases assets (prepaid insurance)and decreases equity (insurance expense decreases retained earnings).Purchasing a machine for cash and investing cash in an interest earning account are asset exchange transactions.Accruing salary expense is a claims exchange transaction.

Which of the Following Is an Asset Use Transaction