Examine Each of the Following Transactions (1)through (5)

question 84

Multiple Choice

Examine each of the following transactions (1) through (5) .Determine where each should be reported on a statement of cash flows.The possible locations are identified by items (a) through (e) .(1) Equity securities of another company were accepted in exchange for a copyright.(2) Received cash dividends.(3) Proceeds from the sale (discounting) of a loan made by the business.(4) Purchased treasury shares.(5) Received a settlement on a lawsuit.A - Operating activities.B - Investing activities.C - Financing activities.D - Schedule of noncash financing and investing activities.E - Not reported on the statement of cash flows.

• A)1 = C; 2 = B; 3 = A; 4 = B; 5 = A
• B)1 = B; 2 = A; 3 = C; 4 = B; 5 = E
• C)1 = D; 2 = A; 3 = B; 4 = C; 5 = A
• D)1 = C; 2 = C; 3 = B; 4 = C; 5 = E
• E)1 = D; 2 = A; 3 = A; 4 = B; 5 = E

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Definitions:

Market Description

An analysis or overview of a particular market, including its size, customer segments, and key dynamics.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

Hybrid Business Form

A type of organizational structure that blends elements of different traditional business forms, aiming for a mix of flexibility, liability protection, and tax benefits.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.