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

question 97

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________ Provided consulting services on account________ Borrowed funds from the bank________ Paid cash to settle accrued salary expense________ Collected accounts receivable

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Definitions:

Subsidiary

A company controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Temporal Method

A method used in accounting to translate foreign currency transactions into the reporting currency of a business.

Current Exchange Rates

The present value of one currency in terms of another, used in converting from one currency to another.