Question

. When goods received as free sample.
(a) Decrease in Asset- decrease in Capital (b) Increase in Asset- increase in Capital
(c) Increase in Asset- increase in liability (d) Non –Economic transaction

Answer 1

Answer:

a option is correct

Answer 2

Non-Economic Transaction is the correct

Explanation:-

option(d) Non-Economic Transaction is the correct

When goods are received as a free sample it is a non-economic transaction because the goods have been received for no cash or credit exchange has taken place on behalf of the goods received.

Though there is an increase in an asset, there is neither increase in capital nor an increase in liability.