Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), or a transaction that is not reported on the statement of cash flows (N)
a) ________ Receipt of interest
b) ________ Increase of accounts payable
c) ________ Borrowed money from a bank
d) ________ Purchase of building for cash
e) ________ Declaration of cash dividends
f) ________ Sold plant equipment for cash
g) ________ Increase of accounts receivable
h) ________ Payment on principal of a note
What will be an ideal response?
Answer: a) O, b) O, c) F, d) I, e) N, f) I, g) O, h) F
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