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ACC206 - Principles of Accounting II � AU

This paper explores principles of accounting at an advanced level, emphasizing topics such as long-term liabilities and cash flow statements.

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    ACC206 - Principles of Accounting II – AU E14 - 13 - Classifying cash flow statement - ACC206 - Principles of Accounting II – AU E14 - 13 Classifying items on the indirect statement of cash flows [5 – 10 min] The cash flow statement categorizes like transactions for optimal reporting. Requirement 1. Identify each of the following transactions as one of the following: • Operating activity (O) • Investing activity (I) • Financing activity (F) • Noncash investing and financing activity (NIF) • Transaction that is not reported on the statement of cash flows (N) For each cash flow, indicate whether the item increases (+) or decreases ( – ) cash. The indirect method is used to report cash flows from operating activities. (5 - 10 min.) E 14 - 13 Req. 1 O+ a. Loss on sale of land I+ i. Cash sale of land NIF b. Acquisition of equipment F+ j. Issuance of long - term note by issuance of note payable to borrow cash payable F – c. Payment of long - term debt O+ k. Depreciation NIF d. Acquisition of building by F – l. Purchase of treasury stock issuance of common stock

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