Identify Each of the Following Transactions as an Operating Activity

question 101

Essay

Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), or a transaction that is not reported on the statement of cash flows (N).
a) ________ Decrease of supplies
b) ________ Decrease of accounts payable
c) ________ Declaration of cash dividends
d) ________ Purchase of building for cash
e) ________ Increase of accounts receivable
f) ________ Sold plant equipment for cash
g) ________ Borrowed money from a bank
h) ________ Payment on principal of a note

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Definitions:

Stagnation

A state of inactivity or lack of growth and development, often leading to decreased productivity and innovation.

Slowdown

A reduction in the speed or rate of activities, often referring to economic downturns or decreased productivity.

Enthusiasm

Intense and eager enjoyment, interest, or approval.

Yerkes-Dodson Law

A theory that suggests there is an optimal level of arousal for performance, and that too little or too much arousal can adversely affect task performance.