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Practice · C1

Operating, investing, financing, or noncash?

Sort each item. Every miss tells you why.

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  1. 1.Cash collected from customers

  2. 2.Interest received on a loan to another company

  3. 3.Interest paid on a bank loan

  4. 4.Income taxes paid

  5. 5.Purchase of equipment for cash

  6. 6.Sale of a long-term investment

  7. 7.Lending money to another company

  8. 8.Collecting the principal of that loan

  9. 9.Issuing bonds for cash

  10. 10.Buying treasury stock

  11. 11.Paying dividends

  12. 12.Buying land by signing a note

  13. 13.Converting bonds into common stock

Practice · P1

Put the statement's own facts in place

Sort each fact into its section and direction.

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  1. 1.Depreciation expense 24,000

  2. 2.Loss on sale of plant assets 6,000

  3. 3.Gain on retirement of notes 16,000

  4. 4.Accounts receivable rose 20,000

  5. 5.Merchandise inventory rose 14,000

  6. 6.Prepaid expenses rose 2,000

  7. 7.Accounts payable fell 5,000

  8. 8.Interest payable fell 1,000

  9. 9.Income taxes payable rose 10,000

  10. 10.Sold plant assets for 12,000 cash

  11. 11.Bought plant assets: the $10,000 paid in cash

  12. 12.Bought plant assets: the $60,000 financed by a note

  13. 13.Issued common stock for 15,000 cash

  14. 14.Paid 18,000 cash to retire notes

  15. 15.Paid 14,000 cash dividends