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Paying cash to purchase inventory is
a. an asset source transaction.
b. an asset use transaction.
c.an asset exchange transaction.
d. a claims exchange transaction.
Solution
Paying cash To purchase inventory means :
i) Paying cash means cash (assets) decrease
ii) Purchase inventory means inventory (assets) increase
so it means its a assets exchange
so answer is c) an asset exchange transaction.

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Paying cash to purchase inventory isa. an asset source transaction.pdf

  • 1. Paying cash to purchase inventory is a. an asset source transaction. b. an asset use transaction. c.an asset exchange transaction. d. a claims exchange transaction. Solution Paying cash To purchase inventory means : i) Paying cash means cash (assets) decrease ii) Purchase inventory means inventory (assets) increase so it means its a assets exchange so answer is c) an asset exchange transaction.