Finally indicate the effect of the transactions to cash flows. Transactions Activity Reason Effect Affects profit Payment to supplier of goods Operating Decrease Cas and loss Payment to supplier of services

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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Instructions: Classify each transaction whether they are operating, financing or
investing. After which, indicate the reason for classification.
Finally indicate the effect of the transactions to cash flows.
Transactions
Activity
Reason
Effect
Affects profit
Payment to supplier of goods
Operating
Decrease Cash
and loss
Payment to supplier of services
Receipt from goods sold
Receipt from service rendered
Payment to employees
Purchase of equipment
Purchase of fixtures
Purchase of patents
Purchase of copyrights
Purchase trademarks
Payment of interest
Proceeds from interests
Payment to owners
Receipts from owners
Pay
Proceeds from long-term debt
ent of income taxes
Payment of long-term
Proceeds from sale of vehicle
Proceeds from sale of patent
Proceeds from sale of trademarks
CS Scanned with CamScanner
Transcribed Image Text:Instructions: Classify each transaction whether they are operating, financing or investing. After which, indicate the reason for classification. Finally indicate the effect of the transactions to cash flows. Transactions Activity Reason Effect Affects profit Payment to supplier of goods Operating Decrease Cash and loss Payment to supplier of services Receipt from goods sold Receipt from service rendered Payment to employees Purchase of equipment Purchase of fixtures Purchase of patents Purchase of copyrights Purchase trademarks Payment of interest Proceeds from interests Payment to owners Receipts from owners Pay Proceeds from long-term debt ent of income taxes Payment of long-term Proceeds from sale of vehicle Proceeds from sale of patent Proceeds from sale of trademarks CS Scanned with CamScanner
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