Question

qickly please

T 140/D1 | Fundamentals of Financial Acc westion 1 Which of the following is an asset source transaction? et yet swered O a. Issued common stock. larked out of 00 O b. Received a payment on accounts receivable. Flag question O c. Accrued salary expense. O d. Paid a cash dividend to stockholders. Question 2 Which of the following items is an example of revenue? a. Cash received from the sale of land for its original selling price Not yet answered Marked out of 1.00 Flag question O b. Cash received from a bank loan O c. Cash received from customers at the time services were provided O d. Cash received from investors from the sale of common stock امه ENG 00 TT-VT. novo

Answer 1

(1)

Ans. (a) issued common stock

EXPLANATION

An asset source transaction is a transaction where asset is generated by the company.

Some of the ways are given below through which a company can generate assets

• Taking loan
• Issue equity

In this case company raise finance from the issue of common stock causes increase in asset i.e. cash increase,

This is an asset source transaction.

(2)

Ans. (c) cash received from customers at the time services were provided.

EXPLANATION

Revenue means income earned from goods sold and by providing services.Interest earned or interest income is also revenue item.

But cash received from investors from sale of common stock is not revenue.

THANK YOU