Indicate whether each of the following transactions is an asset source( AS), asset use (AU), asset exchange (AE), or claims exchange (CE) transaction.
A. Acquired cash from the issue of stock.
B. Paid a cash dividend to the stockholders.
C. Paid cash on accounts payable.
D. Incurred other operating expenses on account.
E. Paid cash for rent expenses.
F. Performed services for cash.
G. Performed services for clients on account.
H. Collected cash from accounts receivable.
I. Received cash for services to be performed in future.
J. Purchased land with cash.
Transaction is the activity that takes place in any business firm on a regular basis. It can be a financial or a non-financial transaction. Based on the transactions, the recording in the journal book, ledger book, and other financial statements of the company are prepared.
Answer and Explanation: 1
1. Asset sources: It is a transaction which increases assets and claims on assets.
2. Assets Use: It refers to the transactions related to the use of...
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fromChapter 1 / Lesson 5
Understand the meaning of a business transaction in accounting, see some examples of a business transaction, and explore different types of business transactions.