Matching
For each of the following items, indicate whether it would be classified as either an operating activity, an investing activity, a financing activity or a significant, noncash financing and investing activity.
Premises:
Purchased a warehouse in exchange for shares of its stock
Sale of land for cash
Signed a note payable in exchange for cash
Purchased equipment in exchange for a 6-month note payable
Paid interest on a note payable
Purchased equipment for cash
Purchased supplies for cash
Cash sales of merchandise
Paid cash to settle an account payable
Reissued its own treasury stock
Responses:
(O) operating activity
(I) investing activity
(F) financing activity
(N) noncash financing and investing activity
Correct Answer:
Premises:
Responses:
Purchased a warehouse in exchange for shares of its stock
Sale of land for cash
Signed a note payable in exchange for cash
Purchased equipment in exchange for a 6-month note payable
Paid interest on a note payable
Purchased equipment for cash
Purchased supplies for cash
Cash sales of merchandise
Paid cash to settle an account payable
Reissued its own treasury stock
Premises:
Purchased a warehouse in exchange for shares of its stock
Sale of land for cash
Signed a note payable in exchange for cash
Purchased equipment in exchange for a 6-month note payable
Paid interest on a note payable
Purchased equipment for cash
Purchased supplies for cash
Cash sales of merchandise
Paid cash to settle an account payable
Reissued its own treasury stock
Responses:
Related Questions
Q8: A company purchased equipment for $150,000 by
Q66: _activities include those transactions that affect long-term
Q130: To be classified as a cash equivalent,an
Q131: An investment that is readily convertible to
Q150: Which of the following items is reported
Q154: The appropriate section in the statement of
Q156: A company had wage expense of
Q159: When the operating activities section of the
Q161: Use the cash flow on total assets
Q165: Spirit Company,a merchandiser,recently completed its 2010