Indicate Whether Each of the Following Activities Would Be Reported

question 204

Essay

Indicate whether each of the following activities would be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity, or if it does not appear on the cash flow statement. (a) Cash paid for building
(b) Cash paid to suppliers
(c) Cash paid for owner's withdrawal
(d) Cash received from customers
(e) Cash received from the owner's investment
(f) Cash received from the sale of a building
(g) Borrowed cash from a bank

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Definitions:

Economic Conditions

The state of a country's economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Liquidity

A company’s ability to convert assets into cash.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which spreads the cost evenly over its estimated useful life.

Useful Life

An estimate of the duration over which an asset is expected to be economically viable and operational in a business.