Question 10
POST_UTME_BABCOCK_UNIVERSITY
•
2022
•
ACCOUNTING
•
objective
A company's balance sheet shows the following balances: Cash ₦200,000, Accounts Payable ₦150,000, Common Stock ₦500,000, Retained Earnings ₦300,000. Prepare the company's statement of cash flows.
Answer Options
Correct Answer
A.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operating Activities} & \textbf{₦} \\ \hline \text{Net Income} & 300,000 \\ \text{Depreciation} & 100,000 \\ \text{Accounts Payable} & 150,000 \\ \hline \text{Total Cash Flows from Operating Activities} & 550,000 \\ \hline \end{tabular}}
B.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Investing Activities} & \textbf{₦} \\ \hline \text{Purchase of Assets} & 200,000 \\ \text{Sale of Assets} & 100,000 \\ \hline \text{Total Cash Flows from Investing Activities} & 100,000 \\ \hline \end{tabular}}
C.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Financing Activities} & \textbf{₦} \\ \hline \text{Issuance of Common Stock} & 500,000 \\ \text{Dividends Paid} & 100,000 \\ \hline \text{Total Cash Flows from Financing Activities} & 400,000 \\ \hline \end{tabular}}
D.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operating Activities} & \textbf{₦} \\ \hline \text{Net Income} & 300,000 \\ \text{Depreciation} & 100,000 \\ \text{Accounts Payable} & 150,000 \\ \hline \text{Total Cash Flows from Operating Activities} & 550,000 \\ \hline \end{tabular}}
Correct Answer
A
Correct Option:
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operating Activities} & \textbf{₦} \\ \hline \text{Net Income} & 300,000 \\ \text{Depreciation} & 100,000 \\ \text{Accounts Payable} & 150,000 \\ \hline \text{Total Cash Flows from Operating Activities} & 550,000 \\ \hline \end{tabular}}
About This Question
This is
Post Utme Babcock University
2022
Accounting
Question 10.
It is one of the
objective
questions from the
2022
Post Utme Babcock University
Accounting
examination.