VIP Corporation engaged in the transactions that follow. Identify each transaction as (a) An operating activity, (b)
Question:
(a) An operating activity,
(b) An investing activity,
(c) A financing activity,
(d) A noncash transaction,
(e) Not on the statement of cash flows.
Assume the indirect method is used.
1. Paid interest.
2. Increased dividends receivable.
3. Declared and paid a cash dividend.
4. Purchased a long-term investment.
5. Increased accounts receivable.
6. Sold equipment at a loss.
7. Issued long-term bonds for plant assets.
8. Issued common stock.
9. Declared and issued a stock dividend.
10. Decreased wages payable.
11. Purchased a 60-day Treasury bill.
12. Repaid notes payable.
13. Purchased land.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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