Post Utme Bells University 2021 Accounting Question 25

Practice objective / multiple choice question 25 from the 2021 Post Utme Bells University Accounting examination.

Post Utme Bells University 2021 Accounting Objective / Multiple Choice
Question 25 POST_UTME_BELLS_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's financial statements show a current ratio of 3:1. However, the company's cash flow statement shows a positive 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 financial statements.
B. The company has made a mistake in preparing the cash flow statement.
C. The company has invested in new assets but has not yet been debited.
Correct Answer D. The company has paid dividends but has not yet been debited.
Correct Answer
D
Correct Option:
The company has paid dividends but has not yet been debited.

About This Question

This is Post Utme Bells University 2021 Accounting Question 25. It is one of the objective questions from the 2021 Post Utme Bells University Accounting examination.

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