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For Each of the Following Items, Indicate Whether It Would

Question 167

Matching

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity or a significant, (N) noncash financing and investing activity.

Premises:

Responses:

Sold equipment for cash

(O) operating activity

Received interest from investments in trading securities

(I) investing activity

Received cash dividends from investments in trading securities

(F) financing activity

Collected accounts receivable from customers

(N) noncash financing and investing activity

Purchases of land for cash

Purchased land in exchange for a note payable

Issued bonds payable for cash

Issued stock for cash

Paid cash dividends

Paid wages to employees

Premises:

Sold equipment for cash

Received interest from investments in trading securities

Received cash dividends from investments in trading securities

Collected accounts receivable from customers

Purchases of land for cash

Purchased land in exchange for a note payable

Issued bonds payable for cash

Issued stock for cash

Paid cash dividends

Paid wages to employees

Responses:

(O) operating activity

(I) investing activity

(F) financing activity

(N) noncash financing and investing activity

Correct Answer:

Premises:

Responses:

Sold equipment for cash

Received interest from investments in trading securities

Received cash dividends from investments in trading securities

Collected accounts receivable from customers

Purchases of land for cash

Purchased land in exchange for a note payable

Issued bonds payable for cash

Issued stock for cash

Paid cash dividends

Paid wages to employees