Question

Select from the option list provided the appropriate balance sheet classification for each asset below. Each choice may be used once, more than once, or not at all.

Purchase of available-for-sale securities
Purchase of land
3. Dividends distributed to shareholders
4. Equipment acquired through capital lease
Sale of trading securities
3. Dividends distributed to shareholders
7. Equipment acquired through purchase
8. Dividends received
9. Interest paid
10. Interest received
11. Retirements of bond principal
. Issuance of preferred shares

Options- investing activity, operating activity, financing activity, noncash investing and financing activity, not reported on statement of cash flows, depends on nature and purpose

Answer 1

List [question]		Appropriate classification
1	Purchase of available for sale securities	Investing activity
2	Purchase of Land	Investing activity [if purchase made in cash]
3	Dividends distributed to shareholders	Financing Activity [outflow]
4	Equipment acquired through capital lease	Non Cash Investing & financing activity [no cash involved]
5	Sale of Trading Securities	Investing activities
6	Dividends distributed to shareholders	Financing Activity [outflow]
7	Equipment acquired through purchases	Investing activities
8	Dividends received	Investing activities
9	Interest Paid	Depends on nature and purpose
10	Interest received	Depends on nature and purpose
11	Retirement of Bonds Principal	Financing Activity [outflow]
12	Issuance of Preferred shares	Financing Activity [outflow]