Indicate whether each of the following items should be classified as an operating, investing, or financing activity

Question:

Indicate whether each of the following items should be classified as an operating, investing, or financing activity on the statement of cash flows. If an item does not belong on the statement, indicate why.
a. Declaration of dividends on shares, to be paid later
b. Payment of dividends on shares
c. Purchase of operating equipment
d. Receipt of cash from the sale of a warehouse
e. Receipt of cash through a long-term bank loan
f. Interest payments on a long-term bank loan
g. Acquisition of land for cash
h. Purchase of the company's own shares on the stock market
i. Investment in another company by buying some of its shares
j. Net decrease in accounts payable
Accounts Payable
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

Question Posted: