Classify Each of the Following Transactions for the Purpose of the Statement

question 131

Essay

Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), financing activities (FA), or not reported on the statement of cash flows (NA).Sold land.Made adjusting entry to recognize interest revenue on investments.Borrowed funds from the bank.Paid rent in advance for the next six months.Paid cash to settle accrued salary expense.Purchased supplies on account.Collected accounts receivable.

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Definitions:

Coupon Frequency

The frequency with which a bond's interest payments are made to bondholders, such as annually, semi-annually, quarterly, or monthly.

Semi-Annually

Occurring or carried out twice a year, typically used in the context of payments, interest accrual, or reporting periods.

Yield-To-Maturity

The total return anticipated on a bond if it is held until the maturity date.

Bond Principle

The face value of a bond, which is the amount to be repaid by the issuer to the bondholder at maturity.