When Accounting for Asset Exchanges

question 42

Multiple Choice

When accounting for asset exchanges,

• A) if a transaction lacks commercial substance, it is not recorded.
• B) an asset cannot be recognized at more than its fair value.
• C) if the fair values of either the asset given up or the asset received cannot be ascertained, then the Board of Directors may assign an arbitrary value.
• D) when an exchange lacks commercial substance, either a gain or loss may be recognized.

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Definitions:

CRM

Customer Relationship Management, a strategy and technology for managing a company's interactions with current and potential customers.

TPS

An information system known as the Transaction Processing System is built to accumulate, preserve, change, and access transactions data for an organization.

IS Systems

"Information Systems," integrated sets of components for collecting, storing, and processing data and for providing information, knowledge, and digital products.

Internal Processes

The procedures and activities conducted within an organization to ensure effective operation and fulfillment of the organization's goals.