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Q1) Cash Flow Classifications: For each of the following items, point to whether it would be classified and reported under operating activities (OA), investing activities (IA), or financing activities (FA) section of statement of cash flows:

a. Cash receipts from selling merchandise
b. Cash payments for wages and salaries
c. Cash proceeds from sale of stock
d. Cash purchase of equipment
e. Cash dividends paid
f. Cash received from bank loan
g. Cash payments for inventory
h. Cash receipts from services rendered
i. Cash payments for taxes
j. Cash proceeds from sale of property no longer needed as expansion site.

Accounting Basics, Accounting

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