A company issued common stock for cash. Is this classified as an operating activity, an investing activity, or a financing activity? Explain. | Homework.Study.com (2024)

Get access to this video and our entire Q&A library

• A company issued common stock for $1,000,000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company received $30,000 cash from the issue of common stock. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company purchased treasury stock. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company issued a bond payable. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• Is cash received from issuing new common stock classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company paid an account payable. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company purchased stock in another company. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company purchased land. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company declared and paid a cash dividend. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company repurchased and retired common stock. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company purchased a 40 percent interest in the common stock of another company. Classify this as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
• A company purchased equipment. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company sold a piece of equipment. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company sold equipment for $500,000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• Goldman Company sold equipment for $22,400 cash. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company collected $55,000 from customers on account. Is this classified as a financing, investing, and/or operating activity? Explain.
• A company obtained a loan from a local bank. Is this business activity classified as a financing, investing, or operating activity? Explain.
• A company issued bonds that will be due in 10 years. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company borrowed $8,000 cash from the bank. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company purchased short-term investments. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company sold a machine at book value. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• Goldman Company used $4,200 cash to pay office utilities. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• Is selling shares of common stock to new stockholders a cash flow from operating activities, investing activities, or financing activities? Explain.
• What is the type of cash flow activity for issued common stock? a. operating b. investing c. financing
• A company sold preferred stock to investors. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company purchased treasury stock for cash. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• Goldman Company used $1,850 cash for the purchase of office supplies. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• Is cash received from customers classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company sold land for $5,000 cash. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company issued 30,000 shares of capital stock in exchange for $300,000 in cash. Is this classified as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity)? Explain.
• A company paid cash for stock in another company. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• A company paid $4,000 cash on the principal of a bank loan. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company purchased a new plant for $5,000,000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company performed services for $25,000 cash. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company paid $9,000 cash to purchase land. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company paid cash dividends of $2,000,000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company received cash for sales. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• A company issued bonds with a six-year maturity date for $2,000,0000. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company sold one of its warehouses for $750,000. Classify this transaction as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
• Is cash paid to stockholders (dividends) classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company paid $70,000 for merchandise that had previously been purchased on account. Is this classified as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity)? Explain.
• Is cash paid to suppliers classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company declared and paid a cash dividend. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• Goldman Company purchased mining equipment for $72,000 cash. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company paid $1,500 cash for utility expenses. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• Goldman Company purchased a company vehicle, paying $9,900 cash and borrowing $14,900. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company purchased inventory on account at a cost of $90,000. Is this classified as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity)? Explain.
• Are dividends paid to shareholders classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company paid cash dividends of $350,000. Classify this transaction as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
• A company purchases a building and some equipment for $45,000 in cash. Is this classified as an operating, investing, or financing activity on the statement of cash flows?
• A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under: a. Investing activities b. financing activities c. noncash investing and financing activities d. operating activities
• A company purchased 500 shares of its own stock on the open market for $4,000. How would this transaction be reported on the statement of cash flows? State whether it would be an inflow or outflow from operating activities, investing activities, or financ
• Suppose a business issued $250,000 of ordinary shares in exchange for cash. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
• Goldman Company paid $39,500 cash to repay a portion of a long-term note payable. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A business purchases inventory. Is this best described as an operating, financing, or investing activity? Explain.
• Is cash paid to purchase a new office building classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company paid $5,000 cash for salary expenses. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• A company retired long-term bonds. Classify this transaction as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
• A company sold a long-term stock investment for cash at book value. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• A company paid a $2,000 cash dividend to its stockholders. How should this be classified on the statement of cash flows? a. operating activity b. investing activity c. financing activity d. none of the above
• Determine whether the following event of a firm is under financing activity, investing activity, or operating activity: Buys back shares of common stock.
• A company issued a long-term note payable. Classify this as an operating activity, an investing activity, or a financing activity. Is it a source of cash or a use of cash?
• How would a company record the purchase of $30,000 of Treasury Stock on the Statement of Cash Flows? a. As a cash inflow for investing activities. b. As a cash outflow for financing activities. c. As a cash inflow for financing activities. d. As a cas
• Does common stock go on the cash flow statement under operating activities?
• A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under which section? a. investing activities b. financing activities c. operating activities d. non-cash investing and financing activities
• A company retired a long-term note payable. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• A company purchases land using its common stock. Where would this transaction appear when the company prepares the statement of cash flows? a. Financing activities section as a cash payment b. Investing activities section as a cash payment under both meth
• In a company's statement of cash flows, what types of activities would you find under the category investing activities? What about under financing activities?
• Would cash received from the sale of capital stock be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity, or does it not appear at all?
• A company paid an account payable. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• A company paid cash for a new piece of equipment. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• A company issued bonds payable for cash. Is this classified as a cash inflow or outflow from operating activities, financing activities, investing activities, or non-cash investing and financing activities?
• Land acquired from the issuance of common stock is reported A) as a financing activity. B) as an investing activity. C) as an operating activity. D) in a separate schedule at the bottom of the statement of cash flows.
• Consider the following transaction: Issuing the company's common stock for cash. Determine whether the transaction is a cash flow from investing activities, financing activities, or operating activities, or if it is a non-cash transaction to be shown in a
• If a company purchases treasury stocks, this will be included in the cash flow statement category of: a. Investing activities. b. Operating activities. c. Financing activities. d. None of these.
• Is paying cash for supplies a cash flow from operating activities, investing activities, or financing activities? Explain.
• Paying cash to buy stocks or bonds of another company is an example of: a. a capital activity b. a merchandising activity c. a financing activity d. an operating activity e. an investing activity
• Is cash paid to acquire machinery classified as an operating activity, an investing activity, or a financing activity?
• On the statement of cash flows, the proceeds from the sale of equipment would be classified as: A) An investing activity. B) An operating activity. C) A financing activity. D) Either an investing, operating, or financing activity.
• A company paid interest to long-term creditors. Is this classified as an operating activity, an investing activity, or a financing activity? Is it a source or use of cash?
• Cash received from issuing Common Stock would appear in which of the following sections of the statement of cash flows? a. Cash inflow from operating activities. b. Cash inflow from investing activities. c. Cash inflow from financing activities. d. None o
• A company paid cash dividends of $2,500. How would this transaction be reported on the statement of cash flows? State whether it would be an inflow or outflow from operating activities, investing activities, or financing activities.
• Land acquired from the issuance of common stock is reported: a. as an investing activity. b. as an operating activity. c. in a separate schedule at the bottom of the statement. d. as a financing activity.
• Would the issuance of common stock for cash appear in the operating, investing, or financing activities section of the statement of cash flows, or would it not appear at all? Explain.
• Is a payment to employees for work done classified as an operating activity, an investing activity, or a financing activity? Explain.
• How should the issuance of capital stock be classified in the statement of cash flows? a. operating activity b. investing activity c. financing activity d. significant non-cash investing and financing activity
• Indicate the type of activity (operating activity, financing activity, investing activity, noncash transaction) the following transaction represents. Company sold shares of its own stock for cash.
• A company issued bonds at a face value of $100,000. How would this transaction be reported on the statement of cash flows? State whether it would be an inflow or outflow from operating activities, investing activities, or financing activities.
• How should the conversion of bonds into common stock be classified in the statement of cash flows? a. operating activity b. investing activity c. financing activity d. significant non-cash investing and financing activity
• If a company has significant non-cash investing activities, are the activities reported on the cash flow?
• Is cash paid for income taxes classified as an operating activity, an investing activity, or a financing activity?
• Is purchasing equipment by paying cash a cash flow from operating activities, investing activities, or financing activities? Explain.
• Goldman Company obtained $59,000 cash from the bank in the form of a long-term note payable. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• A company purchases a building for $500,000 by paying $200,000 cash and issuing common shares for the balance. Which of the following is true on a statement of cash flows under the indirect method: (a) $500,000 subtracted in the investing activities secti
• Goldman Company received $45,100 cash from customers for consulting services provided. Is this classified as an operating activity, an investing activity, or a financing activity? Explain.
• Would cash received from the sale of a building be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity, or does it not appear at all?
• Suppose a business borrowed $460,000 from the bank. Classify this transaction as cash inflow or outflow from operating activities, investing activities, or financing activities.
• Seneca Company sold common stock to investors for cash. On a statement of cash flows, would this be classified as an operating activity, an investing activity, or a financing activity? Is it a cash inflow or a cash outflow?
• Does a firm classify the acquisition of a plant asset by common stock issuance as both an investing and a financing activity on the cash flow statement in the year of acquisition? Explain.
• For the following business activity, determine whether it is an operating, an investing, or a financing activity: Buying stock from another company.