Identify Each of the Following Transactions as an Operating Activity

question 107

Short Answer

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)________ Receipt of interest
b)________ Increase of accounts payable
c)________ Borrowed money from a bank
d)________ Purchase of building for cash
e)________ Declaration of cash dividends
f)________ Sold plant equipment for cash
g)________ Increase of accounts receivable
h)________ Payment on principal of a note

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after making adjusting entries.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the company's books for the next accounting period.

Adjusted Balances

Financial statement figures corrected for errors, omissions, or other adjustments as part of the reconciliation process.

Closing Entries

Entries recorded at the close of an accounting cycle to move balances from temporary to permanent accounts, thus preparing the temporary accounts for the upcoming period.