Classify Each of the Following Cash Flows as One of a Cash

question 19

Essay

Classify each of the following cash flows as one of a cash flow from operations (CFO), a cash flow from investing activities (CFI), a cash flow from financing activities (CFF) or a non-cash transaction (N).
A) Payment of cash dividends
B) Issuing common shares for cash
C) Principal repayments on long-term debt
D) Interest payments on long-term debt
E) Purchase of capital assets
F) Purchase of inventory
G) Collection of accounts receivable
H) Payment of salaries
I) Amortization expense
J) Sale of land

• A) Payment of cash dividends
• B) Issuing common shares for cash
• C) Principal repayments on long-term debt
• D) Interest payments on long-term debt
• E) Purchase of capital assets
• F) Purchase of inventory
• G) Collection of accounts receivable
• H) Payment of salaries
• I) Amortization expense
• J) Sale of land

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Definitions:

Informal Report

A report that is usually short, addressing routine matters, and follows a more relaxed structure and tone.

Lateral Report

A report that communicates information or progress among peers or departments within the same level of an organization, facilitating collaboration.

Proposal Reports

Documents designed to outline plans for a project, seeking approval or funding.

Nonprofit Agencies

Organizations that operate for public or social benefit, rather than generating profit for owners or shareholders.