Cash investments made by the owner in the business are reported on the statement of cash flows in the

Question

Quizplus · Accepted Answer

Cash investments made by the owner in the business are considered as a form of financing, and therefore, they are reported in the financing activities section of the statement of cash flows. This section reports cash flows related to raising or repaying capital, such as loans, share issuances or repurchases, dividends paid, and other financing transactions. Cash flows related to investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment, or investments in securities or other businesses. Cash flows related to operating activities relate to the company's core operations, such as sales, expenses, and taxes. Supplementary statements typically provide additional information or disclosure on specific items, such as significant non-cash transactions.

Cash Investments Made by the Owner in the Business Are