Question

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:financing activities section.investing activities section.operating activities section.supplemental statement.

Answer 1

The correct answer is financing activities section.

Step-by-step explanation:

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the financing activities section. As company has three ways to obtain capital one is from debtor, other out of its retain earning and third by issuing stocks i.e giving ownership. Cash investments made by the stockholders is investment made in company not by company so it is reported as financing activities.