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)Recognized revenue earned on a contract where the cash had been collected at an earlier date.

Question

Quizplus · Accepted Answer

Collecting cash on accounts receivable is an asset exchange transaction that increases one asset (cash)and decreases another asset (accounts receivable).Issuing common stock is an asset source transaction.Accruing salary expense and recognizing revenue earned on a contract where the cash had been collected at an earlier date are both claims exchange transactions.

Which of the Following Is an Asset Exchange Transaction