Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following is an asset source transaction?

Declaring and paying a cash dividend

Paying off a loan with cash

Purchasing equipment with cash

Issuing common stock for cash

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Verified step by step guidance

Step 1: Understand the concept of an asset source transaction. An asset source transaction is one that increases the total assets of a company. This typically involves acquiring assets through external sources such as issuing stock, borrowing funds, or earning revenue.

Step 2: Analyze the first option: Declaring and paying a cash dividend. This transaction decreases assets (cash) and equity (retained earnings), so it is not an asset source transaction.

Step 3: Analyze the second option: Paying off a loan with cash. This transaction decreases assets (cash) and liabilities (loan payable), so it is not an asset source transaction.

Step 4: Analyze the third option: Purchasing equipment with cash. This transaction involves exchanging one asset (cash) for another asset (equipment), so it does not increase total assets and is not an asset source transaction.

Step 5: Analyze the fourth option: Issuing common stock for cash. This transaction increases assets (cash) and equity (common stock), making it an asset source transaction. This is the correct answer.