Identify Where Each of the Following Transactions Would Be Shown

question 35

Essay

Identify where each of the following transactions would be shown on the statement of cash flows when it is prepared by the indirect method. Identify each transaction as an operating activity (O), an investing activity (I), a financing activity (F), or transaction that is not reported on the statement of cash flows (N).
a) ________ Paid for fire insurance in advance
b) ________ Cash used to purchase new computers
c) ________ Cash used to retire bonds outstanding
d) ________ Depreciation expense
e) ________ Cash used to purchase fixed assets
f) ________ Cash proceeds from sale of the company's own stock
g) ________ Bought back own stock
h) ________ Received cash dividends

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Definitions:

Microworld

A simplified, manageable model of a complex system used for educational purposes or to simulate scenarios for research and analysis.

Computer-Based Simulation

Use of computer algorithms and models to replicate or mimic real-world processes, scenarios, or systems for analysis, prediction, or educational purposes.

Social Traps

Situations where individuals or groups pursue immediate rewards that later prove to have negative or even disastrous consequences.

Overconfidence

The psychological state of being too confident in one’s own abilities, often leading to taking greater risks.