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a. QUESTION 1 For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or invest
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Answer #1
Particulars Activity Remarks
Purchased Building Investing Activity Purchase of an Asset
Sold Patents Investing Activity Sale of an Asset
Net Income Operating Activity Income is generated from Operating Business
Issued Common Stock Financing Activity Raised Capital through issue of Stock
Paid Cash Dividends Financing Activity Dividends paid are classified as financing activites
Depreciation Expense Operating Activity Needs to be added back to net income in operating activity as it is non cash expense
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