Post Utme Caleb University 2025 Accounting Question 3

Practice objective / multiple choice question 3 from the 2025 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2025 Accounting Objective / Multiple Choice
Question 3 POST_UTME_CALEB_UNIVERSITY • 2025 • 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 discrepancy?

Answer Options

A. The company has not recorded a gain on the sale of assets.
B. The company has not recorded a loss on the sale of assets.
C. The company has not recorded a depreciation expense.
Correct Answer D. The company has not recorded a gain on the sale of investments.
Correct Answer
D
Correct Option:
The company has not recorded a gain on the sale of investments.

About This Question

This is Post Utme Caleb University 2025 Accounting Question 3. It is one of the objective questions from the 2025 Post Utme Caleb University Accounting examination.

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