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Which of the Following Represents Effects of an Asset Use

Question 171

Multiple Choice

Which of the following represents effects of an asset use transaction on a company's financial statements?  Assets = Liab. + Equity  Rev.  Exp. = Net Inc.  Cash Flow \begin{array} { | l | l | l | l | l | l | l | } \hline \text { Assets } = & \text { Liab. } + & \text { Equity } & \text { Rev. } - & \text { Exp. } = & \text { Net Inc. } & \text { Cash Flow } \\\hline\end{array}


A)
= NA + NA  NA = NA -FA \begin{array} { | l | l | l | l | l | l | l | l | l | l | l } \hline - & = & \text { NA } & + & - & \text { NA } & - & \text { NA } & = & \text { NA } & \text {-FA } \\\hline\end{array}
B)
=+ NA  NA = IA \begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}\hline- & = & - & + & \text { NA } & \text { NA } & - & - & = & - & - \text { IA } \\\hline\end{array}
C)
=NA+NA= OA \begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}\hline- & = &NA & + &-&-& - &NA & = & - & - \text { OA } \\\hline\end{array}
D)
 None of these could represent the effects of an asset source transaction. \text { None of these could represent the effects of an asset source transaction. }

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