For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( + ) or outflow ( - ), or (NE) if thetransaction has no effect on cash.1. Received deposits from customers for products to be delivered the following period.2. Principal repayments on loan.3. Paid cash to purchase new equipment.4. Received proceeds from loan.5. Collected payments on account from customers.6. Recorded and paid salaries and wages to employees.7. Paid cash for building construction.8. Recorded and paid interest to debt holders.
For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( + ) or outflow ( - ), or (NE) if thetransaction has no effect on cash.1. Received deposits from customers for products to be delivered the following period.2. Principal repayments on loan.3. Paid cash to purchase new equipment.4. Received proceeds from loan.5. Collected payments on account from customers.6. Recorded and paid salaries and wages to employees.7. Paid cash for building construction.8. Recorded and paid interest to debt holders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
For each of the following transactions, indicate whether operating (O), investing (I), or financing
activities (F) are affected and whether the effect is a
transaction has no effect on cash.
1. Received deposits from customers for products to be delivered the following period.
2. Principal repayments on loan.
3. Paid cash to purchase new equipment.
4. Received proceeds from loan.
5. Collected payments on account from customers.
6. Recorded and paid salaries and wages to employees.
7. Paid cash for building construction.
8. Recorded and paid interest to debt holders.
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