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Classify Cash flows

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Asked: Aug 19,2021 In: Statistical quality control
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name i sixsigma Punditsdkoslkdosdkoskdo
Asked: Aug 19,2021 In: Statistical quality control

Classify Cash flows

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Purcahse of investments
b. Disposal of equipment. 
c. Payment of selling expenses. 
d. Collection of accounts receivable. 
e. Cash sales.
f. Issuance of bonds payable. 


Classify cash flows
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i sixsigma
i sixsigma Added an answer on Aug 20,2021

Cash flows from operating activities result from transactions that affect net income.

Cash flows from investing activities result from purchase or sale transactions of noncurrent assets. Recall the definition of a noncurrent asset.

Cash flows from financing activities result from the issuance or retirement of debt and equity. Recall that debt would be something that the company would owe back to another company or individual over a long period of time. Equity means ownership and the company does not have to pay anything back.

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