Question

A transaction may be an exchange of assets or services by one business for assets, services, or promises to pay from a different business.A. TrueB. False

Answer 1

Answer:

A. True

Explanation:

A transaction may be an exchange of assets or services by one business for assets, services, or promises to pay from a different business.

(1) Exchange of assets or services by one business for assets, services from a different business

The exchange of goods or services only by two different businesses qualifies as a barter transaction. It doesn't include payment for the goods and services purchased in the form of money but includes payment only in the form of goods and services from the other business for the goods purchased by it.

(2) Exchange of assets or services by one business for promises to pay from a different business

This type of transaction is a common transaction involving the purchase of goods and services by one business ( the buyer) from another and thereby making payment to the business from whom it has purchased goods and services (the seller).

The payment can be made immediately or in the future at a specified date mutually agreed upon by both the business parties.