O d 555700809000 QUESTION 2 1 points Payment of previouslyac

O d. $555,700/809,000 QUESTION 2 1 points Payment of previously-acerued interest on a note payable is a/an O a asset source transaction. O b. asset use transaction O c. asset exchange transaction. O d. claims exchange transaction.

Solution

Q2) Ans: Option B Asset use transaction

Reason: payment of interest is an outflow of funds so it will reduce the funds of the company thus it is an asset use transaction.

Ans 7) Option C: Asset Exchange

Reason: company purchase its own shares in exchange of the cash outflow , so this transaction is considered as an exchange of the asset.