Question

Determine the type of activity for each of the scenarios described below Received cash dividends from investments in securities. [ Select ] Collected accounts receivable from customers. [ Select ] Issued bonds payable for cash. [ Select ] Paid wages to employees. [ Select ] Issued stock for cash. [ Select ] Sold equipment for cash. [ Select ] Paid cash dividends. [ Select ] Purchases of land for cash. [ Select ]

Answer 1

Answer:

Scenarios                                               Type of activity

Received cash dividends from        OPERATING Activity

investments in securities.

Collected accounts receivable         OPERATING Activity

from customers.

Issued bonds payable for cash.        FINANCING Activity

Paid wages to employees.                OPERATING Activity

Issued stock for cash.                        FINANCING Activity

Sold equipment for cash.                   INVESTING Activity

Paid cash dividends.                           FINANCING Activity

Purchases of land for cash.                INVESTING Activity