Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q13PSA.

Expert-verified
Financial & Managerial Accounting
Found in: Page 42
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

A start-up company often engages in the following transactions during its first year of operations. Classify those transactions in one of the three major categories of an organization’s business activities. F. Financing I. Investing O. Operating

1. Shareholders investing land in business.

2. Purchasing a building.

3. Purchasing land.

4. Borrowing cash from a bank.

5. Purchasing equipment.

6. Selling and distributing products.

7. Paying for advertising.

8. Paying employee wages.

Shareholders are the people who own the shares and classification is done.

See the step by step solution

Step by Step Solution

Definition of Shareholders

Shareholders are defined as the person who owns the capital of the company in the form of shares which is the smallest unit of the capital.

Classification of transactions

Transactions

Business activities

1.

Financing activity

2.

Investing Activity

3.

Investing Activity

4.

Financing activity

5.

Investing Activity

6.

Operating activity

7.

Operating activity

8.

Operating activity

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.