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Business, 20.03.2020 02:58 orangeicecream
The statement of cash flows classifies all cash inflows and outflows into one of the three categories:
A. Operating activities,
B. Investing activities,
C. Financing activities.
In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities. Required: For each of the following transactions, select the appropriate classification category
1. Purchase of equipment in exchange for a note payable.2. Payment of rent.3. Collection of cash from customers.4. Payment of interest on debt.5. Purchase of a bond of another company.6. Issuance of common stock for cash.7. Sale of land for cash8. Receipt of interest on a note receivable.9. Receipt of principal on a note receivable.10. Payment of cash dividends to shareholders.
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