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Elis [28]
3 years ago
15

Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is information

to the contrary. (a) Purchase of equipment. choose the type of cash flow activity (b) Sale of building. choose the type of cash flow activity (c) Redemption of bonds. choose the type of cash flow activity (d) Cash received from sale of goods. choose the type of cash flow activity (e) Payment of dividends. choose the type of cash flow activity (f) Issuance of capital stock.
Business
1 answer:
Valentin [98]3 years ago
5 0

Answer: Please refer to Explanation

Explanation:

A little introduction.

The Cash Flow Statement is divided into 3 sections being the operating, investing, or financing sections.

Operating Section

- The entries that fall under here are directly related to the provision of goods and services by the company for its consumers. They involve cash receipts from sales, payments to suppliers and taxes amongst others.

Investing Section

- This part of the Statement includes cash spent or cash generated from Investment activities such as the purchase of other company stocks or bonds and the cash entries related to Fixed assets.

Financing Section

- This section has to do with the entries related to how the company is funded and include shares, bonds and dividends.

Classifying the Above therefore we have,

a) Purchase of equipment. INVESTING ACTIVITY.

(b) Sale of building. INVESTING ACTIVITY.

(c) Redemption of bonds. FINANCING ACTIVITY.

(d) Cash received from sale of goods. OPERATING ACTIVITY.

(e) Payment of dividends. FINANCING ACTIVITY.

(f) Issuance of capital stock. FINANCING ACTIVITY.

If you need any further clarification do comment. Cheers.

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8 0
1 year ago
In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is recorded as defe
Tema [17]

Answer:

The Journal entries are as follows:

(i) In 2018,

Income Tax Expense A/c                      Dr. $24

Deferred Tax Assets A/c ($40 × 30%)  Dr. $12

To Income Tax Payable ($120 × 30%)                        $36

(Being income tax and deferred tax recorded for 2018)

(ii) In 2019,

Income Tax Expense A/c                         Dr.  $45

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6 0
3 years ago
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Answer:

Enterprise social media network.

Explanation:

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5 0
3 years ago
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kolbaska11 [484]

Answer:

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