Classifying cash flows Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Purchase of investments b. Disposal of equipment c. Payment for selling expenses d. Collection of accounts receivable e. Cash sales f. Issuance of bonds payable

Classifying cash flows Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Purchase of investments b. Disposal of equipment c. Payment for selling expenses d. Collection of accounts receivable e. Cash sales f. Issuance of bonds payable

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

Classifying cash flows

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Purchase of investments

b. Disposal of equipment

c. Payment for selling expenses

d. Collection of accounts receivable

e. Cash sales

f. Issuance of bonds payable

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