Question

omiy ahswers recorded on your seantren will be graded swer from among those given and 1) Which of the following transactions should be classified as investing statement of cash flows? Increase in accounts receivable. Sale of property, plant and equipment. Retirement of bonds payable Issuance of common stock to the shareholders. as investing activities on an entity's 2) Which of the following events will appear owing events will appear in the cash flows from financing activities section of the statement of cash flows? Interest payments to lenders and other creditors Purchase of common stocks issued by other companies C. Cash received from customers. Cash purchase of treasury stock. 3) Which of the following would not be classified as an operating activity Interest received Income tax paid Dividend received Payment of dividends

Answer 1

Operating activities includes normal business revenue and expense, Investing activities includes purchase and sale of long term assets, investment but financing activities includes inflow and outflow from Stock, bond and dividend paid

1) Investing activities = Sale of property, plant and equipment

2) Financing activities = Cash purchase of treasury stock

3) Operating activities includes dividend received, Interest received and income tax paid but not payment of dividend

So answer is d) Payment of dividends