Select from the option list provided the appropriate balance sheet classificatio
ID: 2395464 • Letter: S
Question
Select from the option list provided the appropriate balance sheet classification for each asset below. Each choice may be used once, more than once, or not at all.
Purchase of available-for-sale securities Purchase of land 3. Dividends distributed to shareholders 4. Equipment acquired through capital lease Sale of trading securities 3. Dividends distributed to shareholders 7. Equipment acquired through purchase 8. Dividends received 9. Interest paid 10. Interest received 11. Retirements of bond principal . Issuance of preferred shares Options- investing activity, operating activity, financing activity, noncash investing and financing activity, not reported on statement of cash flows, depends on nature and purposeExplanation / Answer
Answer
List [question]
Appropriate classification
1
Purchase of available for sale securities
Investing activity
2
Purchase of Land
Investing activity [if purchase made in cash]
3
Dividends distributed to shareholders
Financing Activity [outflow]
4
Equipment acquired through capital lease
Non Cash Investing & financing activity [no cash involved]
5
Sale of Trading Securities
Investing activities
6
Dividends distributed to shareholders
Financing Activity [outflow]
7
Equipment acquired through purchases
Investing activities
8
Dividends received
Investing activities
9
Interest Paid
Depends on nature and purpose
10
Interest received
Depends on nature and purpose
11
Retirement of Bonds Principal
Financing Activity [outflow]
12
Issuance of Preferred shares
Financing Activity [outflow]
List [question]
Appropriate classification
1
Purchase of available for sale securities
Investing activity
2
Purchase of Land
Investing activity [if purchase made in cash]
3
Dividends distributed to shareholders
Financing Activity [outflow]
4
Equipment acquired through capital lease
Non Cash Investing & financing activity [no cash involved]
5
Sale of Trading Securities
Investing activities
6
Dividends distributed to shareholders
Financing Activity [outflow]
7
Equipment acquired through purchases
Investing activities
8
Dividends received
Investing activities
9
Interest Paid
Depends on nature and purpose
10
Interest received
Depends on nature and purpose
11
Retirement of Bonds Principal
Financing Activity [outflow]
12
Issuance of Preferred shares
Financing Activity [outflow]
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