Which of the following would be classified as an operating activity? Payment of interest. Sale of equipment. Payment of a cash dividend. Making a loan to another entity.
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- What's the significance of identifying if the transaction is under operating, investing or financing activities?What is the primary means of conveying financial information to external users?Explain which transactions are reported as operating activities, investing activities and financing activities?
- On a company's financial statements, do you have to list/note if an asset is being used as collateral for a loan or note? Which statement?In financial accounts, how are interfund transactions accounted for?Which of the following should be classified as financial instrument? Inventories C. Patents B. Land and building D. Trade accounts receivable
- Investments in equity instruments are financial assets because they are Group of answer choices Cash equivalents. Contractual rights to receive cash or another financial asset from another entity. Equity instruments of another entity. Contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity.When income is to be recognized on cash basis. by Safe Trust Bank, a distinction should be made between a. Banking and Non-banking assets b. Monetary and Non-banking assets c. Current and Non-current assets d. Performing and Non-performing assetsTransactions involving the purchase and sale of long-term assets, investing in equity securities, lending money, and collecting the principal on related loans are called a.investing activities. b.operating activities. c.buying and selling activities. d.financing activities.
- Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)How are accounts payable treated to compute the net worth of abusiness entityThe acquisition of assets by issuing securities would be classified as an operating activity. an investing activity. a financing activity. a noncash investing and financing activity.