Statement of Cash Flow

Question 1

Financing activities

Answer 1

Financing activities include (1) issuance of stock,
(2) payment of dividends, (3) treasury stock transactions,
(4) issuance of debt,
(5) obtaining cash from creditors and repayment or other settlement of debt obligations,
(6) the exercise of share options resulting in excess tax benefits, and
(7) receiving resources that are donor-restricted to long-term use.

Question 2

Equipment purchased with a note payable

Answer 2

Acquisitions a long-lived assets with a note payable or a bond is a financing non-cash transactions

Question 3

Lease payments

Answer 3

Payment of principal is a finance activity and payment of interest an operating activity

Question 4

Investing activity

Answer 4

Making and collecting loans