Cash as a medium of exchange is the _______________ standard for the business: a. Main. b. Not important. c. Primary. d. Secondary

Th e sale of a building for cash would be classifi ed as what type of activity on the cash fl ow statement? B . Investing.

Place an X' in the appropriate columns for each of the following situations to indicate how amounts are classified and how or whether cash is affected: Effect on Cash Operating Investing Financing Activity Inflow (+) Situation Outflow No Activity Activity () Effect a. Paying off accounts payable with cash. b. Retirement of common stock with cash. e. Issuance of bonds for |cash. |d. Acquired land by issuing | common stock. e. Paid cash for inventory. E Collection of accounts receivable with customer cash.

Which side of the cash book records cash paid? a) Debit b) Credit c) Both sides d) None of the above