Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.1E
The following provides a list of transactions and a list of business activities.
| Transactions | Business Activities |
| 1. _____ Borrow from the bank. | a. Financing |
| 2. _____ Provide services to customers. | b. Investing |
| 3. _____ Issue common stock to investors. | c. Operating |
| 4. _____ Purchase land. | |
| 5. _____ Pay rent for the current period. | |
| 6. _____ -Pay dividends to stockholders. | |
| 7. _____ Purchase building. |
Required:
Match the transaction with the business activity by indicating the letter that corresponds to the appropriate business activity.
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Students have asked these similar questions
Preliminary course. Classify each of the
following accounts as an asset, liability,
equity, revenue or expense.
a Sales.
b Cost of goods sold.
Accounts receivable.
d Lease.
e Mortgage loan.
f Inventory or stock.
g Advertising.
h Interest paid on loans.
i
Bank overdraft.
j Company car.
k Equipment.
I Land and buildings.
m Owners' capital.
n Accounts payable.
Tax on net profit.
p Telephone.
q Accountant's fees.
Wages.
Cash.
t Insurance.
Retained profits.
v Debentures.
Indicate if the following transactions increase or decrease cash and classify the transactions as Operating, Investing or Financing Activities
Enter I For increase and D for decrease.
Enter O for Operating, I for Investing, and F for Financing.
1. Pay taxes
D
O
2. Collect cash from customers
I
O
3. Issue common stock
F
4. Take out a loan from a bank
5. Purchase stock in another company
I
6. Sell government debt security
7. Buy a patent
8. Retire a bonds payable
9. Pay dividends
10. Pay insurance
11. Pay interest on a loan
12. Pay principal on a loan
13. Pay salaries
14. Repurchase treasury stock
15. Sell a copyright to another firm
16. Pay suppliers for inventory
17. Dividend payments received from stock investment.
18. Interest payments received from investment in government debt securities.
Which of the following transactions will increase an asset and increase stockholders’ equity?a. Performing a service on account for a customerb. Borrowing money from a bankc. Collecting cash from a customer on an account receivabled. Purchasing supplies on account
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Explain what it means to say that an accounting...Ch. 1 - Identify some of the people interested in making...Ch. 1 - What is the basic difference between financial...Ch. 1 - What are the two primary functions of financial...Ch. 1 - What are line three basic business activities that...Ch. 1 - Prob. 6RQCh. 1 - What are a few of the typical investing activities...Ch. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Provide the basic definition for each of the...
Ch. 1 - Prob. 11RQCh. 1 - What are the four primary financial statements?...Ch. 1 - What does it mean to say that the income...Ch. 1 - Prob. 14RQCh. 1 - What is the accounting equation? Which financial...Ch. 1 - Prob. 16RQCh. 1 - The retained earnings account is a link between...Ch. 1 - Prob. 18RQCh. 1 - Prob. 19RQCh. 1 - Prob. 20RQCh. 1 - Prob. 21RQCh. 1 - Prob. 22RQCh. 1 - Prob. 23RQCh. 1 - Prob. 24RQCh. 1 - Prob. 25RQCh. 1 - What are the three primary objectives of financial...Ch. 1 - Prob. 27RQCh. 1 - Prob. 28RQCh. 1 - Prob. 29RQCh. 1 - What is meant by the term cost effectiveness in...Ch. 1 - Prob. 31RQCh. 1 - Prob. 1.1BECh. 1 - Match each business activity with its description....Ch. 1 - Prob. 1.3BECh. 1 - Prob. 1.4BECh. 1 - For each transaction, indicate whether each...Ch. 1 - For each transaction, indicate whether each...Ch. 1 - Describe each financial statement (LO13) Match...Ch. 1 - Determine the location of items in financial...Ch. 1 - Prob. 1.9BECh. 1 - Indicate which of the following are objectives of...Ch. 1 - Prob. 1.11BECh. 1 - Prob. 1.12BECh. 1 - Prob. 1.13BECh. 1 - The following provides a list of transactions and...Ch. 1 - Falcon Incorporated has the following transactions...Ch. 1 - Prob. 1.3ECh. 1 - Eagle Corp. operates magnetic resonance imaging...Ch. 1 - Prob. 1.5ECh. 1 - Below are the account balances for Cowboy Law Firm...Ch. 1 - At the beginning of the year (January 1), Buffalo...Ch. 1 - Wolfpack Construction has the following account...Ch. 1 - Tiger Trade has the following cash transactions...Ch. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Squirrel Tree Services reports the following...Ch. 1 - Prob. 1.13ECh. 1 - During its first five years of operations, Red...Ch. 1 - Below are approximate amounts related to retained...Ch. 1 - Below are approximate amounts related to balance...Ch. 1 - Below are approximate amounts related to cash flow...Ch. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - A Below are typical transactions for...Ch. 1 - Account classifications include assets,...Ch. 1 - Longhorn Corporation provides low-cost food...Ch. 1 - Below are-incomplete financial statements for...Ch. 1 - Prob. 1.5APCh. 1 - Prob. 1.6APCh. 1 - Listed below are nine terms and definitions...Ch. 1 - Below are typical transactions for Caterpillar...Ch. 1 - Prob. 1.2BPCh. 1 - Prob. 1.3BPCh. 1 - Prob. 1.4BPCh. 1 - Prob. 1.5BPCh. 1 - Prob. 1.6BPCh. 1 - Prob. 1.7BPCh. 1 - Prob. 1.1APCPCh. 1 - Prob. 1.2APFACh. 1 - Prob. 1.3APFACh. 1 - Prob. 1.4APCACh. 1 - Prob. 1.5APECh. 1 - Prob. 1.7APWC
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