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:

Multicollinearity

A situation in regression analysis where two or more predictor variables are highly correlated, potentially undermining the statistical validity of the analysis.

High Correlation

Indicates a strong statistical relationship between two variables, implying that changes in one variable are closely related to changes in another.

Independent Variables

Factors in a study or simulation that are intentionally altered to see how they impact the variables that depend on them.

Multicollinearity

A condition in multiple regression where one predictor variable in a model can be linearly predicted from the others with a substantial degree of accuracy.