Question

Cash flow items must be categorized into one of four categories. Identify each item as operating​...

Cash flow items must be categorized into one of four categories. Identify each item as operating​ (O), investing​ (I), financing​ (F), or​ non-cash (N).
a.
Cash purchase of merchandise inventory
b.
Cash payment of dividends
c.
Cash receipt from the collection of long-term notes receivable
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Answer #1

Answer : a) Operating

              b) Financing

              c) Investing

                a) Cash purchase of merchandise inventory   (O) Operating

                b) Cash payment of dividends                       (F) Financing

                c) Cash receipt from the collection of long-term notes receivable (I) Investing

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