Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The first answer is provided as an example. Cash InflowTransactionType of Activityor Outflow1. Payment of employee salaries.CO2. Sale of land for cash.3. Purchase of rent in advance.4. Collection of an account receivable.5. Issuance of common stock.6. Purchase of inventory.7. Collection of notes receivable.8. Payment of income taxes.9. Sale of equipment for a note receivable.10. Issuance of bonds.11. Loan to another company.12. Payment of a long-term note payable.13. Purchase of treasury stock.14. Payment of an account payable.15. Sale of equipment for cash.

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Answered: Cash Inflow Transaction Type of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The first answer is provided as an example.

Cash Inflow
Transaction
Type of Activity
or Outflow
1. Payment of employee salaries.
CO
2. Sale of land for cash.
3. Purchase of rent in advance.
4. Collection of an account receivable.
5. Issuance of common stock.
6. Purchase of inventory.
7. Collection of notes receivable.
8. Payment of income taxes.
9. Sale of equipment for a note receivable.
10. Issuance of bonds.
11. Loan to another company.
12. Payment of a long-term note payable.
13. Purchase of treasury stock.
14. Payment of an account payable.
15. Sale of equipment for cash.

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