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    Question

     Which of the following is an example of a non-cash

    transaction that affects the cost of an asset?
    A Purchase of an asset for cash Correct Answer Incorrect Answer
    B Sale of an asset for cash Correct Answer Incorrect Answer
    C Exchange of assets Correct Answer Incorrect Answer
    D Disposal of an asset Correct Answer Incorrect Answer

    Solution

    Explanation: When a company acquires an asset through a non-cash transaction, such as an exchange of assets, the cost of the asset is recorded as the fair value of the consideration given or received.

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