Activity #7 A. Classification of Concepts. Classify each transaction whether they are operating, investing, or financing. After which, indicate the reasons for such classification. Finally indicate the effect of the transactions to cash flows. Transaction Activity Reason Effect 1. Payment to suppliers of goods Operating Affects profit and loss Decrease cash 2. Payment to suppliers of services 3. Receipts from goods sold 4. Receipts from service rendered 5. Payment to employees 6. Purchase of equipment 7. Purchase of fixtures 8. Purchase of patents 9. Purchase of copyrights 10. Purchase of trademarks 11. Payment of interest 12. Proceeds from interests 13. Payment to owners 14. Receipts from owners 15. Payment of income taxes 16. Proceeds from long-term debt 17. Payment of long term debt 18. Proceeds from sale of vehicle 19. Proceeds from sale of patent 20. Proceeds from sale of copyrights 21. Proceeds from sale of trademarks
Activity #7
A. Classification of Concepts. Classify each transaction whether they are operating, investing, or
financing. After which, indicate the reasons for such classification. Finally indicate the effect of the
transactions to cash flows.
Transaction Activity Reason Effect
1. Payment to suppliers of goods Operating Affects profit and
loss
Decrease cash
2. Payment to suppliers of services
3. Receipts from goods sold
4. Receipts from service rendered
5. Payment to employees
6. Purchase of equipment
7. Purchase of fixtures
8. Purchase of patents
9. Purchase of copyrights
10. Purchase of trademarks
11. Payment of interest
12. Proceeds from interests
13. Payment to owners
14. Receipts from owners
15. Payment of income taxes
16. Proceeds from long-term debt
17. Payment of long term debt
18. Proceeds from sale of vehicle
19. Proceeds from sale of patent
20. Proceeds from sale of copyrights
21. Proceeds from sale of trademarks
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