Asked by Jalen Taylor on Jul 17, 2024
Verified
Cash investments made by the owner to the business are reported on the statement of cash flows in the
A) financing activities section
B) investing activities section
C) operating activities section
D) supplemental statement
Cash Investments
Money put into financial instruments or assets with the expectation of achieving a profit.
Statement of Cash Flows
A financial report that details the inflows and outflows of cash for a business over a specific period, highlighting operations, investing, and financing activities.
Financing Activities
Transactions related to raising, repaying, or managing the long-term capital and funding of an entity, reflected in the cash flow statement.
- Analyze the implications of owner's investments and withdrawals on the business's financial health.
Verified Answer
AM
Alexis MiddletonJul 23, 2024
Final Answer :
A
Explanation :
Cash investments made by the owner to the business are considered as financing activities as they represent an inflow of cash to the company and are typically recorded under the equity section of the balance sheet.
Learning Objectives
- Analyze the implications of owner's investments and withdrawals on the business's financial health.