APPLICATIONinvesting. After which, indicate the reason for classification.Finally indicate the effect of the transactions to cash flows.TransactionsActivityReasonEffectAffects profitPayment to supplier of goodsOperatingDecrease Cashand lossPayment to supplier of servicesReceipt from goods soldReceipt from service renderedPayment to employeesPurchase of equipmentPurchase of fixturesPurchase of patentsPurchase of copyrightsPurchase trademarksPayment of interestProceeds from interestsPayment to ownersReceipts from ownersPayment of income taxesProceeds from long-term debtPayment of long-termProceeds from sale of vehicleProceeds from sale of patentProceeds from sale of trademarks

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Answered: Activity Reason Effect Affects profit…

Business

Accounting

Activity Reason Effect Affects profit Operating Decrease Cash and loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

APPLICATION
investing. After which, indicate the reason for classification.
Finally indicate the effect of the transactions to cash flows.
Transactions
Activity
Reason
Effect
Affects profit
Payment to supplier of goods
Operating
Decrease Cash
and loss
Payment to supplier of services
Receipt from goods sold
Receipt from service rendered
Payment to employees
Purchase of equipment
Purchase of fixtures
Purchase of patents
Purchase of copyrights
Purchase trademarks
Payment of interest
Proceeds from interests
Payment to owners
Receipts from owners
Payment of income taxes
Proceeds from long-term debt
Payment of long-term
Proceeds from sale of vehicle
Proceeds from sale of patent
Proceeds from sale of trademarks

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