Operating, Investing, or Financing?

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12 Terms

1

What are operating activities?

Operating activities are the types of activities the company performs to generate profits.

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2

What are investing activities?

Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities.

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3

What are financing activities?

The primary types of financing activities are borrowing money, issuing shares of stock, and paying dividends.

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4

Received $1,200 cash in advance from customer.

operating activity

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5

Received $10,000 cash for services performed.

operating activity

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6

Paid $900 cash for October rent.

operating activity

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7

Paid $600 cash for one-year insurance policy.

operating activity

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8

Paid $4,000 cash salaries.

operating activity

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9

Purchased equipment for $5,000 cash.

investing activity

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10

Issued stock for $10,000 cash.

financing activity

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11

Issued note payable for $5,000 cash.

financing activity

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12

Paid $500 cash dividend to stockholders.

financing activity

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