An Asset Source Transaction Increases a Business's Assets and the Claims

question 23

True/False

An asset source transaction increases a business's assets and the claims to assets.

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Definitions:

Credit

An accounting entry that increases liabilities or equity or represents a decrease in assets, also refers to the provision of resources based on trust.

Owner's Capital

The amount of equity a proprietor has in the business, representing the difference between the business's assets and liabilities.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.