For each of the following items, indicate by using the appropriate code letter, how the item should be reported in
1: Declaration and payment of a cash dividend.
2: Decrease in accounts receivable during a period.
3: Conversion of bonds payable into common stock.
4: Purchase of land for cash.
5: Decrease in merchandise inventory during a period.
6: Decrease in accounts payable during a period.
7: Issuance of preferred stock for cash.
8: Sale of equipment for cash at book value.
: Added in determining cash receipts from customers
: Added in determining cash payments to suppliers
: Deducted in determining cash payments to suppliers
: Cash outflow - Financing activity
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Question Posted: February 01, 2018 07:40:04