Question:
The statement of cash flows classifies all cash inflows and outflows into one of the three categories
shown below and lettered from a through c. In addition, certain transactions that do not involve cash are
reported in the statement as noncash investing and financing activities, labeled d.
a. Operating activities
b. Investing activities
c. Financing activities
d. Noncash investing and financing activities
Answer:
1. b _____Purchase of equipment for cash.
2. a ___ Payment of employee salaries.
3. a ___ Collection of cash from customers.
4. c ___ Cash proceeds from a note payable.
5. b __ Purchase of common stock of another corporation for cash.
6. c ___ Issuance of common stock for cash.
The statement of cash flows classifies all cash inflows and outflows into one of the three categories
shown below and lettered from a through c. In addition, certain transactions that do not involve cash are
reported in the statement as noncash investing and financing activities, labeled d.
a. Operating activities
b. Investing activities
c. Financing activities
d. Noncash investing and financing activities
Answer:
1. b _____Purchase of equipment for cash.
2. a ___ Payment of employee salaries.
3. a ___ Collection of cash from customers.
4. c ___ Cash proceeds from a note payable.
5. b __ Purchase of common stock of another corporation for cash.
6. c ___ Issuance of common stock for cash.
