Each of the Events Below May Have an Effect on the Statement

question 183

Essay

Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided. Codes may be used more than once, or not at all.Codes:
I +Investing activity; cash inflow
I -Investing activity; cash outflow
F +Financing activity; cash inflow
F -Financing activity; cash outflow
O +Operating activity; cash inflow
O -Operating activity; cash outflow
NCNoncash investing and financing activity?

Events:
1.Paid the weekly payroll
2.Paid an account payable
3.Issued bonds payable for cash
4.Declared and paid a cash dividend
5.Paid cash for a new piece of equipment
6.Purchased treasury stock for cash
7.Paid cash for stock in another company
8.Recorded depreciation
9.Received cash for sales
10.Sold a long-term stock investment for cash at book value

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Definitions:

Manage Money

The process of organizing, planning, and controlling financial resources effectively to meet personal or business goals.

Budget

An estimate of income and expenditure for a set period of time.

Fixed Expense

Costs that do not vary in amount and are paid on a regular basis, such as rent or mortgage payments.

Recurring Expense

Ongoing financial obligations that individuals or businesses regularly pay, such as rent, utilities, or subscription services.