wWhich category are these in? tell me if its: Operating, Investing, Financing, or noncash.
1. _____ Purchase of equipment for cash.
2. _____ Payment of employee salaries.
3. _____ Collection of cash from customers.
4. _____ Cash proceeds from a note payable.
5. _____ Purchase of common stock of another corporation for cash.
6. _____ Issuance of common stock for cash.
7. _____ Sale of equipment for cash.
8. _____ Payment of interest on note payable.
9. _____ Issuance of bonds payable in exchange for land and building.
10. _____ Payment of cash dividends to shareholders.
11. _____ Payment of principal on note payable.

Respuesta :

1. —Purchase of equipment for cash is an investing activity.

2. -- payment of employee salary is an operating activity.

3. — Collection of cash from customers also an operating activity.

4. —cash proceed from a note payable is a financing activity.

5. — purchase of stock of another entity is an investing activity.

6. —Issuance of common stock for cash is a financing activity.

7. —sale of machinery for cash is an investing activity.

8. —payment of interest on a note payable is an operating activity.

9. —issuing bonds in exchange for real estate and buildings is a non cash transaction.

10. —payment of cash dividends to shareholders is a financing activity.

11. — Paying off a note's principal is a finance activity.

What is investment activity?

  • Buying tangible assets, investing in securities, or selling securities or assets are all examples of investing activity.
  • If management is investing in the long-term health of the company, negative cash flow from investing operations could not be a bad indicator.

Operating Activities: What Are They?

  • The tasks a company performs that are directly relevant to offering its products and/or services to the market are referred to as operating activities.
  • A product or service is manufactured, distributed, marketed, and sold. These are the company's primary commercial activities.

what is financing activity?

  • Transactions involving debt, stock, and dividends are considered financing activities.
  • The cash flow from financing section includes information on debt and equity financing, which varies depending on the capital structures, dividend practices, and debt conditions that particular organizations may have.

Non-cash transactions: What are they?

  • Investing and financing-related transactions that don't employ cash or a cash equivalent are known as non-cash transactions.
  • A business engages in a non-cash transaction when it makes a purchase or incurs a cost but does not pay cash for it; instead, the company signs a promissory note or assumes the repayment of an existing loan.

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