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For Each of the Following Items, Indicate Whether It Would

Question 123

Matching

For each of the following items, indicate whether it would be classified as either an

Premises:

Responses:

Cash sales of merchandise.

(O) operating activity

Sale of land for cash.

(I) investing activity

Signed a note payable in exchange for cash.

(F) financing activity

Purchased supplies for cash.

(N) noncash financing and investing activity.

Paid cash to settle an account payable.

Purchased a warehouse in exchange for shares of its stock.

Paid interest on a note payable.

Reissued treasury stock.

Purchased equipment for cash.

Purchased equipment in exchange for a 6-month note payable.

Premises:

Cash sales of merchandise.

Sale of land for cash.

Signed a note payable in exchange for cash.

Purchased supplies for cash.

Paid cash to settle an account payable.

Purchased a warehouse in exchange for shares of its stock.

Paid interest on a note payable.

Reissued treasury stock.

Purchased equipment for cash.

Purchased equipment in exchange for a 6-month note payable.

Responses:

(O) operating activity

(I) investing activity

(F) financing activity

(N) noncash financing and investing activity.

Correct Answer:

Premises:

Responses:

Cash sales of merchandise.

Sale of land for cash.

Signed a note payable in exchange for cash.

Purchased supplies for cash.

Paid cash to settle an account payable.

Purchased a warehouse in exchange for shares of its stock.

Paid interest on a note payable.

Reissued treasury stock.

Purchased equipment for cash.

Purchased equipment in exchange for a 6-month note payable.