Post Utme Achievers University 2023 Commerce Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2023 Commerce Objective / Multiple Choice
Question 31 POST_UTME_ACHIEVERS_UNIVERSITY • 2023 • COMMERCE • objective

A company's financial statements show that its net income increased by 15% in the current year compared to the previous year. However, its total assets decreased by 8% during the same period. What is the most likely explanation for this phenomenon?

Answer Options

Correct Answer A. The company has reduced its debt by selling off some of its assets.
B. The company has invested in new equipment, which has increased its net income but decreased its total assets.
C. The company has reduced its operating expenses, which has increased its net income but decreased its total assets.
D. The company has increased its dividend payments, which has increased its net income but decreased its total assets.
Correct Answer
A
Correct Option:
The company has reduced its debt by selling off some of its assets.

About This Question

This is Post Utme Achievers University 2023 Commerce Question 31. It is one of the objective questions from the 2023 Post Utme Achievers University Commerce examination.

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