In: Accounting
Classify each of the following items as an (O) operating activity, (I) investing activity, or (F) financing activity
____Purchase of a building
____issuance of capital stock
____receipt of interest revenue
____cash receipts from customers
____paid cash dividend to stockholders
____ paid inventory suppliers
____ collection of long term note
____ issuance of a long-term note payable
____ paid interest expense
____ purchased the stock of another company
Investing activity_____Purchase of a building - Since it relates to acquisition of long term asset for the business.
Financing activity____issuance of capital stock - Since it arranges long term finance for the business.
Operating activity____receipt of interest revenue - Since it is a day to day business activity
Operating activity____cash receipts from customers - Since it is a day to day business activity
Financing activity____paid cash dividend to stockholders - Since it relates to long term source of finance
Operating activity____ paid inventory suppliers - Since it is a day to day business activity
Investing activity____ collection of long term note - Since it is an inflow from investment
Financing activity____ issuance of a long-term note payable - Since it arranges long term finance for the business.
Operating activity____ paid interest expense - Since it is a day to day business activity
Investing activity____ purchased the stock of another company - Since it an investment made outside the business.