All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows.Indicate which relationships are correctly identified in the table below.
$$\begin{array} { | c | c | c | }
\hline \# & \begin{array} { c }
\text { Classification on the Balance } \
\text { Sheet }
\end{array} & \begin{array} { c }
\text { Section on Statement of Cash } \
\text { Flows }
\end{array} \
\hline \text { I } & \text { Bonds Payable } & \text { Financing } \
\hline \text { II } & \text { Equipment } & \text { Operating } \
\hline \text { III } & \text { Common Stock } & \text { Financing } \
\hline \text { IV } & \text { Accounts Payable } & \text { Operating } \
\hline \text { V } & \text { Accounts Receivable } & \text { Operating } \
\hline
\end{array}$$

Question

All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows.Indicate which relationships are correctly identified in the table below.
$$\begin{array} { | c | c | c | } 
\hline \# & \begin{array} { c } 
\text { Classification on the Balance } \
\text { Sheet }
\end{array} & \begin{array} { c } 
\text { Section on Statement of Cash } \
\text { Flows }
\end{array} \
\hline \text { I } & \text { Bonds Payable } & \text { Financing } \
\hline \text { II } & \text { Equipment } & \text { Operating } \
\hline \text { III } & \text { Common Stock } & \text { Financing } \
\hline \text { IV } & \text { Accounts Payable } & \text { Operating } \
\hline \text { V } & \text { Accounts Receivable } & \text { Operating } \
\hline
\end{array}$$

Quizplus · Accepted Answer

Bonds Payable and Common Stock relate to Financing activities. Accounts Payable and Accounts Receivable relate to Operating activities. Equipment relates to Investing activities, not Operating.

All Classifications on the Balance Sheet Have a General Relationship