Operating, Investing, or Financing?

Paid $500 cash dividend to stockholders.

financing activity

Purchased equipment for $5,000 cash.

investing activity

What are investing activities?

Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities.

What are operating activities?

Operating activities are the types of activities the company performs to generate profits.

Paid $4,000 cash salaries.

operating activity

Paid $600 cash for one-year insurance policy.

operating activity

Paid $900 cash for October rent.

operating activity

Received $1,200 cash in advance from customer.

operating activity

Received $10,000 cash for services performed.

operating activity

What are financing activities?

The primary types of financing activities are *borrowing money, issuing shares of stock, and paying dividends.*

Issued note payable for $5,000 cash.

financing activity

Issued stock for $10,000 cash.

financing activity