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Chapter 1: Q21E_d (page 37)

Question: Match each transaction a through e to one of the following activities of an organization: financing activity (F), investing activity (I), or operating activity (O).

d. An organization sells some of its land.

Short Answer

Expert verified

Fixed assets refer to the tangible assets and their disposal will come under investing activities.

Step by step solution

01

Step-by-Step SolutionStep 1 Definition of Fixed Asset

The assets which are owned by the business are tangible in nature and are known as the fixed asset of the business.

02

Choosing the correct activity

The sale of the land will be considered as the investing activity as all the transactions related to the acquisition or the disposal of a fixed asset by the business organizations.

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Most popular questions from this chapter

Question: Match each of the numbered descriptions 1 through 5 with the term or phrase it best reflects. Indicate your answer by writing the letter A through H for the term or phrase in the blank provided. A. Audit B. GAAP C. Ethics D. Tax accounting E. SEC F. Public accountants G. Net income H. IASB

1. An examination of an organization’s accounting system and its records that adds credibility to financial statements.

2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues.

3. An accounting area that includes planning future transactions to minimize taxes paid.

4. Accounting professionals who provide services to many clients.

5. Principles that determine whether an action is right or wrong.

Choose from the following term or phrase a through h to best complete statements 1 through 3.

a. Accounting c. Recording e. Governmental g. Language of business b. Identifying d. Communicating f. Technology h. Recordkeeping (bookkeeping)

1. reduces the time, effort, and cost of recordkeeping while improving clerical accuracy.

2. requires that we input, measure, and log transactions and events.

3. is the recording of transactions and events, either manually or electronically.

Question: Technology is increasingly used to process accounting data. Why then must we study and understand accounting?

Ski-Doo Company manufactures, markets, and sells snowmobiles and snowmobile equipment and accessories. The average total assets for Ski-Doo is \(3,000,000. In its most recent year, Ski-Doo reported net income of \)201,000 on revenues of $1,400,000.

Required 3. What are the total expenses for Ski-Doo Company in its most recent year?

Describe the three major business activities in organizations
See all solutions

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