SOLVED

19.3Â Â Learning Objective 3 1) Which of the following is a financing activity? A) Collection of accounts receivable. B) Collection of loans receivable C) Receipt of bank loan. D) Sale of a machine. 2) Which of the following is an operating activity? A) Receipt of customer deposit. B) Proceeds from mortgage issue. C) Purchase of land. D) Redemption of preferred shares. 3) Which of the following is an investing activity? A) Payment of salaries. B) Purchase of inventory. C) Sale of held for trading investment. D) Collection of loan receivable. 4) What is an investing activity? A) Activities involving the acquisition and disposal of long-term assets. B) Activities involving changes in the size and composition of the contributed equity. C) Activities involving the principal revenue-producing activities of the entity. D) Activities that do not involve cash. 5) What are the two distinct components to investing activities? 6) Investing involves buying and selling debt and equity securities. What two categories of investing do not appear in the investing section of the cash flow statement? 7) Explain the options for recording interest and dividends received and interest and dividends paid on the cash flow statement according to IAS 7.