Post Utme Bells University 2021 Accounting Question 23

Practice objective / multiple choice question 23 from the 2021 Post Utme Bells University Accounting examination.

Post Utme Bells University 2021 Accounting Objective / Multiple Choice
Question 23 POST_UTME_BELLS_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. However, the company's cash flow statement shows a negative cash flow from operating activities. What is the correct explanation for this discrepancy?

Answer Options

A. The company has made a mistake in preparing the balance sheet.
B. The company has made a mistake in preparing the cash flow statement.
Correct Answer C. The company has invested in new assets but has not yet been debited.
D. The company has paid dividends but has not yet been debited.
Correct Answer
C
Correct Option:
The company has invested in new assets but has not yet been debited.

About This Question

This is Post Utme Bells University 2021 Accounting Question 23. It is one of the objective questions from the 2021 Post Utme Bells University Accounting examination.

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