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The statement of cash flows categorizes like transactions for optimal reporting.

Identify each item as a(n):

  • Operating activity—add to net income (O+) or subtraction from net inc. (O–)
  • Investing activity—cash inflow (I+) or cash outflow (I–)
  • Financing activity—cash inflow (F+) or cash outflow (F–)
  • Non-cash Investing and Financing activity (N)

Cash Flow ItemsClassification
Payment of long-term debt
Payment of cash dividend
Decrease in Accrued Liabilities
Acquiring equipment by issuing Note payable
Increase in Accounts Payable
Issuing a long-term note payable to borrow cash
Issuance of common stock
Net Income
Decrease in Merchandise Inventory
Increase in Salaries Payable
Purchase of treasury stock
Increase in Prepaid Expense
Loss on sale of land
Acquiring building for common stock
Depreciation expense
Cash sale of land


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   x    (   ) π DNE
( ) ( ] [ ) [ ] —∞ DNE
< > or All Real Numbers DNE
log logn ln n  | | e 
sin cos tan arcsin arccos arctan  
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