Classify each of the following transactions as operating, financing, or investing activities, or none of these classifications,

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Classify each of the following transactions as operating, financing, or investing activities, or none of these classifications, and state whether it is an inflow or outflow of cash.
1. Bonds were retired.
2. Land was sold at a gain.
3. Preferred shares were converted into common shares.
4. Machinery was purchased by giving a long-term note to the seller.
5. Common shares were sold for cash.
6. Dividends were received on shares of another company held as an investment.
7. Paid utilities expense.
8. A share dividend was declared and issued on common shares.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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