John Contributed $6,000 to the Business by Opening a Bank

question 191

True/False

John contributed $6,000 to the business by opening a bank account in the name of the business,United Internists.This transaction results in an increase in the assets of the business.

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Definitions:

Beginning

The starting point or initial stage of an event, process, or time period.

Operating Activities

Transactions and events related to the primary business activities, such as cash received from sales of goods or services and cash paid for inventory, that affect the cash flow of a company.

Short-Term Notes

Debt securities with a maturity of less than one year, used by companies to manage short-term liquidity needs.

Capital Stock

The total amount of shares that a company is authorized to issue, representing ownership in the company.