For Each of the Following Items, Indicate Whether It Would

question 103

Essay

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
________ (1) Cash sales of merchandise.
________ (2) Sale of land for cash.
________ (3) Signed a note payable in exchange for cash.
________ (4) Purchased supplies for cash.
________ (5) Paid cash to settle an account payable.
________ (6) Purchased a warehouse in exchange for shares of its stock.
________ (7) Paid interest on a note payable.
________ (8) Reissued treasury stock.
________ (9) Purchased equipment for cash.
________ (10) Purchased equipment in exchange for a 6-month note payable.

---

Definitions:

Void Contract

A contract that lacks legal validity and enforceability from the outset, meaning it has no legal effect and cannot be enforced by either party.

Infant

A very young child, especially one newly or recently born.

Illegal

Illegal refers to actions or activities that are prohibited by law or statute.

Enforceable

Refers to a rule, obligation, or agreement that can be legally imposed or carried out.