Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), financing activities (FA), or not reported on the statement of cash flows (NA).
1) ____ Made adjusting entry to recognize interest revenue on investments.
2) ____ Borrowed funds from the bank.
3) ____ Paid rent in advance for the next six months.
4) ____ Paid cash to settle accrued salary expense.
5) ____ Purchased supplies on account.
6) ____ Collected accounts receivable.
7) ____ Sold land.

Question

Quizplus · Accepted Answer

The Answer of Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), financing activities (FA), or not reported on the statement of cash flows (NA).
1) ____ Made adjusting entry to recognize interest revenue on investments.
2) ____ Borrowed funds from the bank.
3) ____ Paid rent in advance for the next six months.
4) ____ Paid cash to settle accrued salary expense.
5) ____ Purchased supplies on account.
6) ____ Collected accounts receivable.
7) ____ Sold land.

Classify Each of the Following Transactions for the Purpose of the Statement