Some Investing and Financing Transactions Do Not Involve Cash and Therefore

question 20

Multiple Choice

Some investing and financing transactions do not involve cash and therefore

• A)appear on the statement of cash flows under operating, investing or financing activities, as appropriate.
• B)appear on the statement of cash flows under operating activities.
• C)appear on the statement of cash flows under operating or financing activities, as appropriate.
• D)appear on the statement of cash flows under investing or financing activities, as appropriate.
• E)do not appear on the statement of cash flows.

---

Definitions:

Original Capital

The initial amount of money invested in a business by its owners or the initial value of an investment.

Salaries

A fixed amount of money paid to employees for their services during a set time frame, often monthly or bi-weekly.

Interest

The cost of borrowing money or the return on investment for the lender or investor.

Original Capital

Original capital refers to the initial amount of money invested in a business or project, used to start operations and acquire necessary resources.