On a Statement of Cash Flows, Additional Cash Invested by a Sole

question 67

Multiple Choice

On a statement of cash flows, additional cash invested by a sole proprietor would be disclosed in

• A) operating activities.
• B) investing activities.
• C) financing activities.
• D) both operating and financing activities.

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Definitions:

Limit Negotiability

Refers to conditions or restrictions that impair the ability to freely transfer or negotiate a financial instrument.

Indorsement

A signature or note on a document (such as a cheque or bill of exchange) that specifies the future control or ownership of the document.

Payee's Name

The name of the individual or entity to whom payment is to be made on a check, draft, or other financial instrument.

Negotiation

The process by which parties discuss their differences, with the aim of reaching an agreement or improving understanding.