Classify each of the following transactions as operating, financing, or investing activities, or none of these classifications,
Question:
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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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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