For Each of the Following Ten Transactions, Indicate by Letter

question 2

Essay

For each of the following ten transactions, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). The first answer is provided as an example. $$\begin{array} { c c l } \begin{array} { c } \text { Type of } \\\text { Activity }\end{array} & \begin{array} { c } \text { Cash Inflow } \\\text { or Outflow }\end{array} & \text { Transaction } \\\hline \text { O } & \text { CO } & \text { Payment of employee salaries } \\&& \text { 1. Issuance of bonds } \\&& \text { 2. Payment of income taxes } \\&& \text { 3. Payment of a long-term note payable } \\& & \text { 4. Sale of treasury stock } \\&& \text { 5. Payment of an account payable } \\&& \text { 6. Sale of land for cash } \\&& \text { 7. Purchase of long-term assets by issuing debt. } \\& & \text { 8. Collection of an account receivable } \\&& \text { 9. Issuance of common stock } \\&& \text { 10. Purchase of inventory }\end{array}$$

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Definitions:

Managerial Accounting

The practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.

Objective

A specific goal or target that an organization or individual aims to achieve, often defined in measurable terms.

Property Tax

Taxes levied by local governments on real estate and sometimes other forms of personal property.

Selling Price

The amount a good or service is sold for in the market.