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.

A) N
B) O
C) F
D) I

1. Received cash dividends from investments in trading securities.
2. Collected accounts receivable from customers.
3. Issued bonds payable for cash.
4. Paid wages to employees.
5. Issued stock for cash.
6. Sold equipment for cash.
7. Purchased land in exchange for a note payable.
8. Paid cash dividends.
9. Received interest from investments in trading securities.
10. Purchases of land for cash.


1. B) O
2. B) O
3. C) F
4. B) O
5. C) F
6. D) I
7. A) N
8. C) F
9. B) O
10. D) I

Business

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If a capital budgeting project has very uncertain cash flows, the Monte Carlo simulation technique can be used to measure its net present value (NPV) for a worst-case scenario, a best-case scenario, and a base-case scenario.

Answer the following statement true (T) or false (F)

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Explain what is meant by the concept of "time compression" in simulation modeling

What will be an ideal response?

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As the production manager of an engineering firm, you went out and bought a metal-cutting machine. What you have purchased can best be classified as a

A. raw material. B. processed component. C. component part. D. service. E. business product.

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