Question

Identify the following as financing activities (F) or investing activities (I):

a. Purchase of equipment
b. Purchase of treasury stock
c. Reduction of long-term debt
d. Sale of building
e. Resale of treasury stock
f. Increase in short-term debt
g. Issuance of common stock
h. Purchase of land
i. Purchase of common stock of another firm
j. Payment of cash dividends
k. Gain on sale of land
l. Repayment of debt principal

Answer 1

Step-by-step explanation:

Financial activities would basically be anything that involves money but is does not involve an asset with value. This would instead be considered Investing activities if you are buying or selling any asset financial asset. Therefore the following would be considered...

a. Purchase of equipment (F)

b. Purchase of treasury stock (I)

c. Reduction of long-term debt (F)

d. Sale of building (I)

e. Resale of treasury stock (I)

f. Increase in short-term debt (F)

g. Issuance of common stock (I)

h. Purchase of land (I)

i. Purchase of common stock of another firm (I)

j. Payment of cash dividends (I)

k. Gain on sale of land (I)

l. Repayment of debt principal (F)