Determine if the activity described flows through the SoCF, if so, what category? (Operating, Investing, or Financing). If it does not flow through the statement, identify it as non cash. If more than one, explain 1 234 5 6 7 Description Received payments on account from customers Paid cash for wages and salaries Purchased inventory for cash Received repayment on a loan with interest Paid the balance on an outstanding note payable, including interest Sold a piece of equipment for $75,000 resulting in a $2,000 gain Borrowed money from the bank. SOCF Category

Determine if the activity described flows through the SoCF, if so, what category? (Operating, Investing, or Financing). If it does not flow through the statement, identify it as non cash. If more than one, explain 1 234 5 6 7 Description Received payments on account from customers Paid cash for wages and salaries Purchased inventory for cash Received repayment on a loan with interest Paid the balance on an outstanding note payable, including interest Sold a piece of equipment for $75,000 resulting in a $2,000 gain Borrowed money from the bank. SOCF Category

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

which of the following is an operating avtivity? A. billing customers for services rendered but not yet paid for B. paying off a loan to the bank C. purchasing equipment for cash D. receiving cash investments from owners
For each of the items indicate type of activity as per cash flows:
Paid interest expense on Note recorded previously (above). Select the account(s) that would be debited and credited when recording the above transaction. If a second debit or credit does not apply, select "None" as a match. Debit Debit Credit Credit Interest Expense Interest Payable Interest Payable Cash
Question 6?
What are the debits and credits?
II. Identification: Identify the following. Write the correct answers on the blanks provided. _is a sum of money received or paid for the use of someone else's money. is the interest earned at the end of the allotted time between the lender and the borrower. 1. 2. 3. _is the interest earned on previously earned interest added to the principal. 4. is used instead of principal. 5. _indicates ownership. 6. is the highest or lowest amount someone is willing to pay for the stocks. 7. _are a portion of the ownership of a company or cooperation. 8. _is the monetary portion of the cooperation's earnings. 9. is a model for determining the price of a stock, based on a future series of dividends that grow at a constant rate. 10. are long-term debt instruments that promise a fixed income in the form of interest.
Q-7
Business makes payment of Bank loan. Which of the following is the correct journal entry? a. Dr Bank Loan account Cr Cash account b. Dr Cash account Cr Loan c. Dr Cash account. Cr Capital d. Dr Bank Cr Cash account
Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer
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