Operating activities: Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services. Investment activities: Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities. Financing activities: Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders. To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

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Answer 1

Question

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

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Answer 2

Question

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

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Answer 3

Question

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

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Answer 4

Question

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

Answer 6

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

Answer 7

Chapter 3, Problem 3.21E

To determine

Operating activities:

Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.

Investment activities:

Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.

Financing activities:

Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.

To classify: Each transaction as either on operating activity, investing activity or financing activity or if no cash is exchanged as a non-cash event.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 3 - Prob. 1Q Ch. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Prob. 7Q Ch. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9Q Ch. 3 - What is the normal balance for each of these...

Solution Summary: The author explains how the business generates revenue, expenses, and expenses by manufacturing, distributing, marketing and selling products or services.

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