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:

Cross-sectional

Pertaining to a research design that examines a data sample or multiple samples at one specific point in time.

Sequential Method

A research or problem-solving technique that involves proceeding through a series of steps in order, one after the other.

Developmental Research Designs

Research methods used to examine changes in behavior or abilities over time, typically used in psychological and educational studies.

Panel Study

A type of longitudinal study where data are collected from the same subjects at multiple points in time, useful for identifying trends and changes.