ACCT 201 Principles of Financial Accounting
Practice Exam - Chapter 12
Reporting & Analyzing Cash Flows
Dr. Fred Barbee

Solution to Short-Problem #1

Short Problem #1

For each of the following items indicate whether it would be classified as either an (0) operating activity, an (I) investing activitye, a (F) financing activity, or a significant (N) noncash financing and investing activity.

(O) 1. Cash sale or merchandise

(I) 2. Sale of land for cash.

(F) 3. Signed a note payable in exchange for cash.

(O) 4. Purchased supplies for cash.

(O) 5. Paid cash to settle an account payable.

(N) 6. Purchased a warehouse in exchange for shares of its stock.

(O) 7. Paid interest on a note payable.

(F) 8. Reissued its own treasury stock.

(I) 9. Purchased equipment for cash.

(N) 10. Purchased equipment in exchange for a 6-month note payable.

(O)	1.	Cash sale or merchandise
(I)	2.	Sale of land for cash.
(F)	3.	Signed a note payable in exchange for cash.
(O)	4.	Purchased supplies for cash.
(O)	5.	Paid cash to settle an account payable.
(N)	6.	Purchased a warehouse in exchange for shares of its stock.
(O)	7.	Paid interest on a note payable.
(F)	8.	Reissued its own treasury stock.
(I)	9.	Purchased equipment for cash.
(N)	10.	Purchased equipment in exchange for a 6-month note payable.