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 Payment of income taxes Proceeds from long-term debt Payment of long-term Proceeds from sale of vehicle Proceeds from sale of patent Proceeds from sale of trademarks

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 Payment of income taxes Proceeds from long-term debt Payment of long-term Proceeds from sale of vehicle Proceeds from sale of patent Proceeds from sale of trademarks

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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