Question

question #24 Identify whether the following transaction is an Asset Source, Asset Use, Asset Exchange or Claims Exchange. Performed services on account. 10:39 Multiple Choice

Answer 1

solution: Performed services on account Asset source. Explantion: Asset source it increases asset as well as claims liability/equity). Asset use: It decreases both an asset as well as a claim on asset. claim exchange : Increase in one claim and decrease in another while total claims remaining the same Asset exchange : Increase in one asset and decrease in another while total asset remaining the same In the give case, Service is performed hence claim (equity) is increased as well as an asset (Account receivble) is increased hence it is an asset source transaction.