Examine Each of the Following Transactions (1)through (5)

Multiple Choice

Examine each of the following transactions (1) through (5) .Determine where each should be reported on a statement of cash flows.The possible locations are identified by items (a) through (e) .(1) Equity securities of another company were accepted in exchange for a copyright.(2) Received cash dividends.(3) Proceeds from the sale (discounting) of a loan made by the business.(4) Purchased treasury shares.(5) Received a settlement on a lawsuit.A - Operating activities.B - Investing activities.C - Financing activities.D - Schedule of noncash financing and investing activities.E - Not reported on the statement of cash flows.

A) 1 = C; 2 = B; 3 = A; 4 = B; 5 = A
B) 1 = B; 2 = A; 3 = C; 4 = B; 5 = E
C) 1 = D; 2 = A; 3 = B; 4 = C; 5 = A
D) 1 = C; 2 = C; 3 = B; 4 = C; 5 = E
E) 1 = D; 2 = A; 3 = A; 4 = B; 5 = E