Below are typical transactions for Caterpillar Inc.Type of Business Activity                                            Transactions 1.____________                                          Pay for advertising. 2. ____________                                  Pay dividends to stockholders. 3. ____________                           Collect cash from customer for previous sale. 4. ____________                         Purchase a building to be used for operations. 5. ____________                                       Purchase equipment. 6. ____________                                                Sell land. 7. ____________                       Receive a loan from the bank by signing a note. 8. ____________                           Pay suppliers for purchase of supplies. 9. ____________                                Provide services to customers. 10.____________                           Invest in securities of another company.Required: Indicate whether each transaction is classified as a financing, investing, or operating activity.

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is