Simpson Company paid cash to purchase land. This event is

Question

Simpson Company paid cash to purchase land. This event isA. an asset source transaction. B. an asset use transaction. C. an asset exchange transaction. D. None of the answers describes this event.

Accepted Answer

Final answer:The correct answer is Option B. The event of Simpson Company paying cash to purchase land is anasset use transaction.Explanation:The event of Simpson Company paying cash to purchase land would fall under the category ofasset use transaction In this case, the company is utilizing its cash (an asset) to acquire land (another asset). It is important to note that asset use transactions involve adecreasein assets (cash) and an increase in other assets (land) on the balance sheet.Learn more about Asset Use Transaction here:brainly.com/question/34194859#SPJ11...

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Simpson Company paid cash to purchase land. This event is

Simpson Company paid cash to purchase land. This event isA. an asset source transaction. B. an asset use transaction. C. an asset exchange transaction. D. None of the answers describes this event.