Question

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Purchase of investments b. Disposal of equipment c. Payment for selling expenses d. Collection of accounts receivable e. Cash sales f. Issuance of bonds payable

Answer 1

a. Investing Activities

b. Investing Activities

c. Operating Activities

d. Operating Activities

e. Operating Activities

f. Financing Activities

Step-by-step explanation:

Operating Activities includes activities in daily operation of the business as in buying and selling with customers and suppliers.

Investing Activities includes the purchase and sell of assets and investments.

Financing Activities includes the raising of capital and debt and repayments to holders.