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For Each of the Following Items, Indicate Whether It Would

Question 173

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For each of the following items, indicate whether it would be classified as an operating activity, an investing activity, a financing activity or a significant, noncash financing and investing activity.

Premises:
Purchased a warehouse in exchange for shares of its stock
Sale of land for cash
Signed a note payable in exchange for cash
Purchased equipment in exchange for a 6-month note payable
Paid interest on a note payable
Purchased equipment for cash
Purchased supplies for cash
Cash sales of merchandise
Paid cash to settle an account payable
Reissued its own treasury stock
Responses:
operating activity
investing activity
financing activity or a significant
noncash financing and investing activity

Correct Answer:

Purchased a warehouse in exchange for shares of its stock
Sale of land for cash
Signed a note payable in exchange for cash
Purchased equipment in exchange for a 6-month note payable
Paid interest on a note payable
Purchased equipment for cash
Purchased supplies for cash
Cash sales of merchandise
Paid cash to settle an account payable
Reissued its own treasury stock
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