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

question 2

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).1)________ Sold land2)________ Received cash for services to be provided in the future3)________ Borrowed funds from the bank4)________ Paid rent in advance for the next six months5)________ Recognized depreciation expense6)________ Purchased supplies on account

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Definitions:

Operating Expenses

Costs related to the normal operations of a business, such as salaries, rent, and utilities, but excluding cost of goods sold.

Property Taxes

Taxes assessed on real estate by the government, typically based on the property's value.

Direct Materials

Raw materials that are traceable directly to the manufacturing of a specific product.

Factory Supervisors' Salaries

Compensation paid to individuals responsible for overseeing and managing factory operations and workers.