Ask Question
10 May, 03:26

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Retirement of bonds payable b. Purchase of inventory for cash c. Cash sales d. Repurchase of common stock e. Payment of accounts payable f. Disposal of equipment

+2
Answers (1)
  1. 10 May, 05:22
    0
    a. Retirement of bonds payable = financing activity

    b. Purchase of inventory for cash = operating activity

    c. Cash sales = operating activity

    d. Repurchase of common stock = financing activity

    e. Payment of accounts payable = operating activity

    f. Disposal of equipment = investing activity

    Explanation:

    Operating Activities are Activities relating to trading in the normal course of business.

    Investing Activities are Activities relating to movement in capital expenditure items.

    Financing Activities are Activities relating to movement in Interest of company owners and providers of finance.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers