Cash Account Is Primarily Affected by Which Transactions in the Capital

question 50

Multiple Choice

Cash account is primarily affected by which transactions in the capital acquisition and repayment cycle?

• A) issue of shares
• B) payment of dividends
• C) both A and B
• D) none of the above

---

Definitions:

Pre-incorporation Subscription

An agreement by an investor to purchase shares in a corporation that is yet to be formed, contingent upon the actual incorporation of the company.

Revoked

The action of withdrawing, cancelling, or annulling something previously granted, such as a license, privilege, or legal right.

Single Person

A single person typically refers to an individual not in a marital or committed relationship, often used in demographic and legal contexts.

Same Entity

Refers to a single organization or company, implying that different parts or aspects being discussed are all components of the same whole.