For each transaction listed below, indicate where it would be presented on the s
ID: 2415223 • Letter: F
Question
For each transaction listed below, indicate where it would be presented on the statement of cash flows. Enter the number that corresponds to your answer in the box provided. Answer choices may be used once, more than once, or not at all.
options:
purchase of a copyright for cash
proceeds from the sale of land
cash paid for advertising
cash received as interest from loans that were made to customers
collection of accounts receivable from sales to customers
proceeds from the sale of common stock
operating activity cash inflow
operating activity cash outflow
investing activity cash inflow
investing activity cash outflow
financing activity cash inflow
financing activity cash outflow
purchase of a copyright for cash
proceeds from the sale of land
cash paid for advertising
cash received as interest from loans that were made to customers
collection of accounts receivable from sales to customers
proceeds from the sale of common stock
1.operating activity cash inflow
2.operating activity cash outflow
3.investing activity cash inflow
4.investing activity cash outflow
5.financing activity cash inflow
6.financing activity cash outflow
Explanation / Answer
Transaction Type of Activity Remarks purchase of a copyright for cash investing activity cash outflow Investing activities relate to cash received from selling or cash paid to purchase long term assets. A copyright is a long-term asset (intangibles) proceeds from the sale of land investing activity cash inflow Investing activities relate to cash received from selling or cash paid to purchase long term assets. Land is a long-term asset cash paid for advertising operating activity cash outflow Operating activities represent the cash effect of revenues and expenses. Advertising is an expense thus making this an operating cash outflow cash received as interest from loans that were made to customers operating activity cash inflow Operating activities represent the cash effect of revenues and expenses. Cash received for interest represents interest revenue collection of accounts receivable from sales to customers operating activity cash inflow Operating activities represent the cash effect of revenues and expenses. The collection of cash from customers results from the sale of goods or services meaning a revenue has been earned. proceeds from the sale of common stock financing activity cash inflow Financing activities are cash that is received from or paid to owners and creditors. The sale of common stock represents cash received from owners and is classified as a financing activity
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