Classify each of the following activities as being either operating, investing or financing for the purpose of
Question:
Classify each of the following activities as being either operating, investing or financing for the purpose of preparing a statement of cash flows. Indicate whether there is an inflow (I) or outflow (O) of cash:
(a) Sale of land and buildings for cash
(b) Payment of wages to employees
(c) Withdrawal of cash by the owner
(d) Repayment of a bank loan
(e) Cash purchase of a truck by a manufacturing company
(f) Lease of a fleet of motor vehicles by a courier business
(g) Borrowing of money from a finance company on a long-term basis
(h) Cash received from customers for the sale of goods
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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