Q3) Listed below are several transactions. For each transaction, indicate by let
ID: 2769278 • Letter: Q
Question
Q3)
Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The first answer is provided as an example.
Transaction Type of Activity Cash Inflow or Outflow
1.Payment of employee salaries O CO
2.Sale of land or cash
3.Purchase of rent in advance
4.Collection of an account receivable
5.Issuance of common stock
6.Purchase of inventory
7.Collection of notes receivable
8.Payment of income taxes
9.Sale of equipment for note
10.Issuance of bonds
11.Loan to another firm
12.Payment of long-term note payable
13.Purchase of treasury stock
14.Payment of an account payable
15.Sale of equipment
Explanation / Answer
Answer:
Transaction Type of Activity Cash Inflow or Outflow 1.Payment of employee salaries O CO 2.Sale of land or cash I CI 3.Purchase of rent in advance O CO 4.Collection of an account receivable O CI 5.Issuance of common stock F CI 6.Purchase of inventory O CO 7.Collection of notes receivable F CI 8.Payment of income taxes O CO 9.Sale of equipment for note NC NE 10.Issuance of bonds F CI 11.Loan to another firm I CO 12.Payment of long-term note payable F CO 13.Purchase of treasury stock F CO 14.Payment of an account payable O CO 15.Sale of equipment I CIRelated Questions
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