Transactions Such as the Purchase of Assets or the Issuance

question 45

Multiple Choice

Transactions such as the purchase of assets or the issuance of debt are not considered income because:

• A) they involve external parties.
• B) they necessarily involve cash.
• C) they do not result in an increase in equity.
• D) they both result in an increase of the asset or liability concerned.
• E) they both result in a reduction of leverage.

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