Examine each of the following transactions (1)through (5).Determine where each should be reported on a statement of cash flows.The possible locations are identified by items (a)through (e).(1)Equity securities of another company were accepted in exchange for a copyright.(2)Received cash dividends.(3)Proceeds from the sale (discounting)of a loan made by the business.(4)Purchased treasury shares.(5)Received a settlement on a lawsuit.A - Operating activities.B - Investing activities.C - Financing activities.D - Schedule of noncash financing and investing activities.E - Not reported on the statement of cash flows.
A)1 = C; 2 = B; 3 = A; 4 = B; 5 = A
B)1 = B; 2 = A; 3 = C; 4 = B; 5 = E
C)1 = D; 2 = A; 3 = B; 4 = C; 5 = A
D)1 = C; 2 = C; 3 = B; 4 = C; 5 = E
E)1 = D; 2 = A; 3 = A; 4 = B; 5 = E

Question

Quizplus · Accepted Answer

1) Equity securities received in exchange for a copyright is a noncash transaction and should be reported in the schedule of noncash financing and investing activities. 2) Cash dividends received are part of operating activities. 3) Proceeds from the sale of a loan represent investing activities. 4) Purchasing treasury shares is a financing activity. 5) Receiving a settlement on a lawsuit is part of operating activities.

Examine Each of the Following Transactions (1)through (5)