For each of the events listed below, select the category that best describes its effect on a
Question:
For each of the events listed below, select the category that best describes its effect on a statement of cash flows. Your categories are as follows:
a - Cash provided/used by operating activities
b - Cash provided/used by investing activities
c - Cash provided/used by financing activities
d - Not a cash flow item
Events:
_____ 1. Issuance of common shares
_____ 2. Purchase of land and building
_____ 3. Redemption of bonds
_____ 4. Proceeds on sale of equipment
_____ 5. Depreciation of machinery
_____ 6. Amortization of patent
_____ 7. Issuance of bonds in exchange for land
_____ 8. Payment of cash dividends
_____ 9. Exchange of furniture for equipment
_____ 10. Loss on disposal of equipment
_____ 11. Increase in accounts receivable during year
_____ 12. Decrease in accounts payable during year