The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. For this question, assume the following:
1. The direct method is used.
2. The indirect method is used.
Assume that the statement of cash flows is being prepared in accordance with ASPE. Classify each of the transactions in
the lettered list that follows as:
1. Operating activity
2. Investing activity
3. Financing activity
4. Not reported as a cash flow
(a) Issuance of common shares
(b) Purchase of land and building
(c) Redemption of bonds
(d) Proceeds on sale of equipment
(e) Depreciation of machinery
(f) Amortization of patent
(g) Issuance of bonds for plant assets
(h) Payment of cash dividends
(i) Exchange of furniture for office equipment
(j) Loss on sale of equipment
(k) Increase in accounts receivable during year
(I) Decrease in accounts payable during year
(m) Payment of interest
(n) Receipt of dividend revenue

  • CreatedSeptember 18, 2015
  • Files Included
Post your question