29. In preparing a statement of cash flows, which of the following transactions would be consideredan operating activity?a. Sale of equipmentb. Taking out a bank loanc. Sale of merchandise on creditd. Declaration of a cash dividend

A CASH FLOW STATEMENT HELPS TO CALCULATE CASH FLOW FROM OPERATIONS OR USED IN OPERATIONS. IT ALSO…

Answered: 29. In preparing a statement of cash…

Business

Accounting

29. In preparing a statement of cash flows, whic an operating activity? a. Sale of equipment b. Taking out a bank loan

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 3MC: Which is the proper order of the sections of the statement of cash flows? A. financing, investing,...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

29. In preparing a statement of cash flows, which of the following transactions would be considered
an operating activity?
a. Sale of equipment
b. Taking out a bank loan
c. Sale of merchandise on credit
d. Declaration of a cash dividend

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In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
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