Financial statements - Cash flow classifications

Question 1

pay off long term debt

Answer 1

cash USED by FINANCING activity

Question 2

pay cash for insurance

Answer 2

cash USED by OPERATIONS

Question 3

obtain cash from a mortgage loan

Answer 3

cash FROM FINANCING activity

Question 4

buy equipment for cash

Answer 4

cash USED by INVESTING activity

Question 5

sell land for cash

Answer 5

cash FROM INVESTING activity

Question 6

sell merchandise

Answer 6

cash FROM OPERATIONS

Question 7

pay back loan

Answer 7

cash USED by FINANCING activity

Question 8

financing examples

Answer 8

stock, notes payable, dividend payment, loans

Question 9

investing examples

Answer 9

purchase property, plant and equipment (land, machinery, buildings, equipment, vehicles), purchase intangible assets (patents, trademarks, copyrights, goodwill)

Question 10

operating examples

Answer 10

sales, supplies, salaries, collections on accounts recievable, rent, inventory