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:

Sociologists

Experts who study society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that people develop.

Culture of Poverty

A concept suggesting that poverty is not just a result of economic insufficiency but is also shaped by values and behaviors passed down within impoverished communities that hinder their members from escaping poverty.

Fatalistic

Pertaining to the belief that all events are predetermined and therefore inevitable, leading to a resignation to outcomes.

Resigned Attitude

A psychological state where an individual accepts a situation or condition as inevitable, often with a sense of powerlessness.