Exercise 1-34 Business Activities
Bill and Steve recently formed a company that manufactures and sells high-end kitchen appliances. The following is a list of activities that occurred during the year.
Required:
Classify each of the business activities listed as either an operating activity (0). an investing activity (I), or a financing activity (F).
Concept Introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:
To Indicate:
The type of the activity for each of the given activity.
The type of the activity for each of the given activity is explained as follows:
Activity | Type of activity | |
a. | F | Contribution by investors is a financing activity |
b. | I | Purchase of property is an Investing activity for the business |
c. | I | Purchase of machinery is an Investing activity for the business |
d. | O | Cash payment to suppliers is an operating activity for the business |
e... |
Corporate Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Foundations of Business (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
Financial And Managerial Accounting
Principles of Information Systems (MindTap Course List)
Principles of Information Security (MindTap Course List)
A Guide to SQL
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
Automotive Technology: A Systems Approach (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Management Of Information Security
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Electric Motor Control
International Edition---engineering Mechanics: Statics, 4th Edition
Solid Waste Engineering
Principles of Geotechnical Engineering (MindTap Course List)
EBK ELECTRICAL WIRING RESIDENTIAL
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Structural Analysis
Network+ Guide to Networks (MindTap Course List)