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For Each of the Items, Select Where the Item Would

Question 39

Matching

For each of the items, select where the item would appear in the statement of cash flows using choices below:

Premises:

Responses:

Prepaid rent.

investing activity

Issued common stock in exchange for land.

note below the statement of cash flows

Issued common stock to retire bonds payable.

operating activity

Issued common stock for cash.

financing activity

Purchased a building for cash.

Paid for merchandise purchased on account.

Paid interest on a short-term note payable.

Received cash from sale of equipment.

Received interest on loans to customers.

Premises:

Prepaid rent.

Issued common stock in exchange for land.

Issued common stock to retire bonds payable.

Issued common stock for cash.

Purchased a building for cash.

Paid for merchandise purchased on account.

Paid interest on a short-term note payable.

Received cash from sale of equipment.

Received interest on loans to customers.

Responses:

investing activity

note below the statement of cash flows

operating activity

financing activity

Correct Answer:

Premises:

Responses:

Prepaid rent.

Issued common stock in exchange for land.

Issued common stock to retire bonds payable.

Issued common stock for cash.

Purchased a building for cash.

Paid for merchandise purchased on account.

Paid interest on a short-term note payable.

Received cash from sale of equipment.

Received interest on loans to customers.