A new startup company often engages in the following transactions in its first year of operations. Classify these transactions in one of the three major categories of an organization's business activities.
A. Financing B. Investing C. Operating [.25 points each]
_____1. Owner's investment in the business
_____ 2. Purchasing a new server
______3. Selling used equipment.
______4. Borrowing cash from a bank.
______ 5. Performing services for customers.
______6. Collecting cash from customers.
______7. Renting warehouse space.
______8. Paying telephone bill.
A 1. Owner's investment in the business
B 2. Purchasing a new server
B 3. Selling used equipment.
A 4. Borrowing cash from a bank.
C 5. Performing services for customers.
C 6. Collecting cash from ...
Given a list of transactions, this solution discusses how to classify each and why that classification is appropriate.