contestada

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

Respuesta :

Answer: True

Explanation:

An Asset source transaction is one where a company gains an asset by using funds from equity, liabilities or earnings from business operations (which is still equity).

As a result of such a transaction, the company gains an asset but as the asset was financed by liabilities or equity, the claims on assets increases as the holders of these liabilities and equity now have more interest in the company.