Below are typical transactions for a company. Indicate whether each transaction is classified as a financing, investing, or operating activity. ?Type of Business ActivityRelated Transactions1.________Sell common stock to investors.2.________Receive cash from customers.3.________Incur amounts owed to employees.4.________Sell services to customers.5.________Incur cost of utilities.6.________Purchase rent one year in advance.7.________Pay for cost of advertising.8.________Purchase building for operations.9.________Purchase supplies on credit.10.________Distribute cash to stockholders.
What will be an ideal response?
1. Financing; 2. Operating; 3. Operating; 4. Operating; 5. Operating; 6. Operating; 7. Operating; 8. Investing; 9. Operating; 10. Financing
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Miscellaneous fees arising from the issuance of stock are charged to the organization expense account only if this is not the company's first issuance of stock
Indicate whether the statement is true or false
Howard is the dean of a small liberal arts college in Pennsylvania. The college has just joined the Billion Dollar Green Challenge. What will he have to do (in coordination with other leadership) to implement this program?
a. Reduce the school’s energy by 1% each year they participate in the challenge. b. Have students make a pledge that they will make contributions to environmental causes in their future careers. c. Contribute school profits to a national fund seeking to raise a billion dollars for climate change. d. Give part of the school’s endowment to a fund for environmental improvements.
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2?
A. $100. B. $0. C. $1,200. D. $2,600. E. $5,050.
All of the following are major documents used in the purchasing process except:
a. sales order. b. purchase order. c. purchase requisition. d. purchase invoice.