Operating Activities
Computer issues common stock for cash
Financing
Electric company pays cash dividends to stockholders
Financing
What are things that happen in a Financing Activity?
In which of the 3 activities do these occur? - Borrow money, record liability, pay loan - Issue/sell stock, repurchase used stock - Pay dividends to stockholders
What are things that happen in an Operating Activity?
In which of the 3 activities do these occur? - Manufacturing - Distributing - Marketing
What are things that happen in an Investing Activity?
In which of the 3 activities do these occur? - Purchase and sell long-term - Physical resources used in business PP&E - Purchase and sell investments
A clothing store receives cash from selling a display case that was used to display jeans in a store
Investing
An art gallery purchases a painting to hang in the business office. The painting is not purchased for resale.
Investing
Cab purchases new tires for cabs
Investing
Computer software store purchases a new computer to track sales
Investing
Furniture store purchases chairs for its staff lounge.
Investing
A retail jeweler purchases jewelry to sell to customers
Operating
An art gallery purchases a painting for resale.
Operating
C.P.A. office pays cash to advertise its services in a local newspaper.
Operating
Dentist office purchases magazines for the waiting room.
Operating
What are Financing Activities?
Which of the 3 activities obtains cash from an outside source?
What are Investing Activities?
Which of the 3 activities refers to cash spent on investments in capital assets?
What are Operating Activities?
Which of the 3 activities refers to the conduct business purpose of the entity?