Type Of Business Activity And Effect On Cash

Question 1

Sold goods in account

Answer 1

Operating, NE

Question 2

Borrowed money from bank

Answer 2

Financing, +

Question 3

Purchased inventory for cash

Answer 3

Operating, -

Question 4

Providing a service for cash

Answer 4

Operating, +

Question 5

Purchased supplies on account

Answer 5

Operating, NE

Question 6

Paid salaries in cash

Answer 6

Operating, -

Question 7

Paid dividends

Answer 7

Financing, -

Question 8

Purchased delivery truck for cash

Answer 8

Investing, -

Question 9

Purchase of goods for resale

Answer 9

Operating, -

Question 10

Issue of common shares

Answer 10

Financing, +

Question 11

Sale of equipment that the company has finished using

Answer 11

Investing, +

Question 12

Receipt of bank loan

Answer 12

Financing, +

Question 13

Purchase of a long-term investment

Answer 13

Investing, -

Question 14

Purchase of equipment

Answer 14

Investing, -

Question 15

Sale of merchandise to a customer

Answer 15

Operating, +

Question 16

Payment of salaries to an employee

Answer 16

Operating, -

Question 17

Sale of a long-term investment

Answer 17

Investing, +

Question 18

Repayment of a loan owed to bank

Answer 18

Financing, -

Question 19

Payment of dividends

Answer 19

Financing, -

Question 20

Payment of interest on money borrowed from bank

Answer 20

Operating, -