For each of the following transactions, classify it as an operating, investing, financing, or significant noncash investing and financingactivity or "none of the above" and assuming the company follows ASPE.(a)Operating ActivityFinancing ActivityRepayment of mortgage payable(b)Investing ActivitySignificant Noncash Investing and Financing ActivityNone of the abovePayment of interest on mortgage(c)Purchase of land in exchange for common shares(d)Issue of preferred shares for cash(e)Payment for the purchase of a trading investment(f)Collection of accounts receivable(g)Declaration of cash dividend(h)Payment of cash dividendCash purchase of inventoryRecording of depreciation expensePurchase and cancellation of common sharesvth

Cash Flow Statement:-It is a statement that shows the cash movement (inflow or outflow) of cash…

For each of the following transactions, classify it as an operating, investing, fnancing, or significant noncash investing and financim activity or "none of the above" and assuming the company follows ASPE. (a) Repayment of mortgage payable Operating Activity Financing Activity Investing Activity Significant Noncash Investing and Financing Activity None of the above (b) Payment of interest on mortgage (c) Purchase of land in exchange for common shares (d) Issue of preferred shares for cash (e) Payment for the purchase of a trading investment (f) Collection of accounts receivable g) Declaration of cash dividend h) Payment of cash dividend Cash purchase of inventory Recording of depreciation expense Purchase and cancellation of common shares

For each of the following transactions, classify it as an operating, investing, fnancing, or significant noncash investing and financim activity or "none of the above" and assuming the company follows ASPE. (a) Repayment of mortgage payable Operating Activity Financing Activity Investing Activity Significant Noncash Investing and Financing Activity None of the above (b) Payment of interest on mortgage (c) Purchase of land in exchange for common shares (d) Issue of preferred shares for cash (e) Payment for the purchase of a trading investment (f) Collection of accounts receivable g) Declaration of cash dividend h) Payment of cash dividend Cash purchase of inventory Recording of depreciation expense Purchase and cancellation of common shares

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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Concept explainers

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.

Question

For each of the following transactions, classify it as an operating, investing, financing, or significant noncash investing and financing
activity or "none of the above" and assuming the company follows ASPE.
(a)
Operating Activity
Financing Activity
Repayment of mortgage payable
(b)
Investing Activity
Significant Noncash Investing and Financing Activity
None of the above
Payment of interest on mortgage
(c)
Purchase of land in exchange for common shares
(d)
Issue of preferred shares for cash
(e)
Payment for the purchase of a trading investment
(f)
Collection of accounts receivable
(g)
Declaration of cash dividend
(h)
Payment of cash dividend
Cash purchase of inventory
Recording of depreciation expense
Purchase and cancellation of common shares
vth

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