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Indicate on the Blanks Below the Letter of the Type

Question 5

Matching

Indicate on the blanks below the letter of the type of activity (operating activity,financing activity,investing activity,noncash transaction)each of the following transactions represents.

Premises:

Responses:

Collected proceeds from the sale of a long-term investment at cost.

investing activity

Declared stock dividends.

financing activity

Purchased equipment with cash.

operating activity

Exchanged shares of stock for 15-year bonds.

noncash transaction

Paid off long-term debt with cash.

Acquired land and buildings by issuance of long-term mortgage payable.

Paid the U.S.Treasury for income taxes.

Company sold shares of its own stock for cash.

Declared and paid cash dividends.

Received interest income.

Premises:

Collected proceeds from the sale of a long-term investment at cost.

Declared stock dividends.

Purchased equipment with cash.

Exchanged shares of stock for 15-year bonds.

Paid off long-term debt with cash.

Acquired land and buildings by issuance of long-term mortgage payable.

Paid the U.S.Treasury for income taxes.

Company sold shares of its own stock for cash.

Declared and paid cash dividends.

Received interest income.

Responses:

investing activity

financing activity

operating activity

noncash transaction

Correct Answer:

Premises:

Responses:

Collected proceeds from the sale of a long-term investment at cost.

Declared stock dividends.

Purchased equipment with cash.

Exchanged shares of stock for 15-year bonds.

Paid off long-term debt with cash.

Acquired land and buildings by issuance of long-term mortgage payable.

Paid the U.S.Treasury for income taxes.

Company sold shares of its own stock for cash.

Declared and paid cash dividends.

Received interest income.