Indicate whether each of the following items should be classified as an operating, investing, or financing activity
Question:
a. Declaration of dividends on common shares, to be paid later
b. Payment of dividends on common shares
c. Purchase of equipment
d. Receipt of cash from the sale of a warehouse
e. Receipt of cash through a long-term bank loan
f. Interest payments on a long-term bank loan
g. Acquisition of land for cash
h. Investment in another company by purchasing some of its shares
i. Net decrease in accounts payable
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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