Classify business activities

Below are typical transactions for Hewlett-Packard.

Required:
Select the type of business activity as financing, investing, or operating for each transaction of Hewlett-Packard.

Transactions	Type of Business Activity
1. Pay amount owed to the bank for previous borrowing.
2. Pay utility costs.
3. Purchase equipment to be used in operations.
4. Provide services to customers.
5. Purchase office supplies.
6. Purchase a building.
7. Pay workers’ salaries.
8. Pay for research and development costs.
9. Pay taxes to the IRS.
10. Sell common stock to investors.

Expert Solution

Transactions	Type of Business Activity
1. Pay amount owed to the bank for previous borrowing.	Financing
2. Pay utility costs.	Operating
3. Purchase equipment to be used in operations.	Investing
4. Provide services to customers.	Operating
5. Purchase office supplies.	Operating
6. Purchase a building.	Investing
7. Pay workers’ salaries.	Operating
8. Pay for research and development costs.	Operating
9. Pay taxes to the IRS.	Operating
10. Sell common stock to investors.	Financing

Transactions	Type of Business Activity
1. Pay amount owed to the bank for previous borrowing.	Financing
2. Pay utility costs.	Operating
3. Purchase equipment to be used in operations.	Investing
4. Provide services to customers.	Operating
5. Purchase office supplies.	Operating
6. Purchase a building.	Investing
7. Pay workers’ salaries.	Operating
8. Pay for research and development costs.	Operating
9. Pay taxes to the IRS.	Operating
10. Sell common stock to investors.	Financing

devender singh answered 3 years ago

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