Post Utme Bowen University 2020 Accounting Question 23

Practice objective / multiple choice question 23 from the 2020 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2020 Accounting Objective / Multiple Choice
Question 23 POST_UTME_BOWEN_UNIVERSITY • 2020 • 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 operations. What is the reason for the difference?

Answer Options

A. The company has invested in a new project.
B. The company has paid a dividend to its shareholders.
C. The company has received a loan from a bank.
Correct Answer D. The company has not managed its working capital effectively.
Correct Answer
D
Correct Option:
The company has not managed its working capital effectively.

About This Question

This is Post Utme Bowen University 2020 Accounting Question 23. It is one of the objective questions from the 2020 Post Utme Bowen University Accounting examination.

View More Post Utme Bowen University 2020 Accounting Questions More Post Utme Bowen University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support