The Ross Comapnay had the following transactions. In the space provided, classif

Question

The Ross Comapnay had the following transactions. In the space provided, classify each transaction by type of activity: Question 1 options: Payment of cash to lenders for interest Payment of cash dividends to stockholders Sale of trasury stock above its cost Exchange of equipment for a patent. Loan of money to a supplier Receipt of interest on loans to another entity Cash payments to the IRS for income taxes. Purchase of equity securities of another entity for cash 1. Investing activities 2. Operating activities 3. Significant noncash investing and financing activity 4. Financing activities

Explanation / Answer

Payment of cash to lenders for interest = financing activity Payment of cash dividends to stockholders=investing activity Sale of trasury stock above its cost Exchange of equipment for a patent.= financing activity Loan of money to a supplier Receipt of interest on loans to another entity Cash =significant non cas activity payments to the IRS for income taxes.=operating activity Purchase of equity securities of another entity for cash = investing activity cheers :)

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