Financing Activity for Accounting Class... help?

Question

Please don't answer this with any remarks such as "you should do your own homework" etc... I know I should but do not understand this exercise.

Directions: For each of the following items, identify which part of the transformation process is involved. Use F to indicate a financing activity, I to indicate an investing activity, or O to identify an operating activity.


a.New manufacturing equipment was purchased for installation in the factory.
b.Three new salespersons were hired.
c.A loan was obtained from a local bank.
d.A $500 down payment on goods received from a customer.
e.The Human Resources department hired three new employees.
f.The company’s worn-out delivery truck was sold to a junk yard for $400.
g.The owner contributed more cash to the business.
h.Refunds totaling $450 were given to several customers.
i.Goods were shipped to a customer in a neighboring state.
j.The remaining balance of the loan was repaid in full

Thank you, I appreciate it

Answer 1

This is a cash flow statement question using indirect method. What class is this for? Good refresher for me though, I haven't done this since school.

A financing activity is money spent buying new assets or selling assets of the business

Operating activity is cash in/out from operations of the business. I asume this is a manufacturer.

Investing activity - cash in or out to increase / decrease equity in the business.

a - f
b - o
c - f
d - o
e - o
f - f - I could be wrong here due to one wierd exception. not sure.
g - i
h - o
i - none
j - f

Answer 2

I want that it have been less difficult, yet pegging down the top mixture is hard without understanding the college and its courses. If I had to bypass in user-friendly terms with the advice given, i could elect worldwide employer and Economics. Accounting is in many situations at a decrease point, besides the certainty that it is an truly good field (you would be interior a similar cubicle for existence.) Financing is linked with banking, which gets you faraway from employer and Economics. until you could acquire a course catalog, bypass with the "Nobel Prize Rule," that's, there's a Nobel Prize for Economics, yet there has under no circumstances been one for Accounting. In Economics, you develop innovations, together as in Accounting, you crunch the numbers to make the assumption paintings. whether, different colleges attitude the fields in different techniques. undergo in techniques that with a view to apply one among those diploma, you will ought to have contacts in enormous apple and/or Washington. no longer in user-friendly terms are you able to get closer to the action and make the spectacular connections, yet such worldwide companies seek for pastime applicants "close to to homestead." My niece studied in Oklahoma to be a translator, yet she knew that she could ought to pass to enormous apple to discover a job. She did that, speaks 4 languages, and is a translator on the UN.