Post Utme Crawford University 2025 Accounting Question 29

Practice objective / multiple choice question 29 from the 2025 Post Utme Crawford University Accounting examination.

Post Utme Crawford University 2025 Accounting Objective / Multiple Choice
Question 29 POST_UTME_CRAWFORD_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's financial statements show a profit of ₦200,000. However, the company's cash flow statement shows a net outflow of ₦50,000. What is the correct explanation for this discrepancy?

Answer Options

Correct Answer A. The company has invested in a new project that has not yet generated any cash flows.
B. The company has paid dividends to its shareholders.
C. The company has purchased a new machine that has not yet been depreciated.
D. The company has an error in its financial statements.
Correct Answer
A
Correct Option:
The company has invested in a new project that has not yet generated any cash flows.

About This Question

This is Post Utme Crawford University 2025 Accounting Question 29. It is one of the objective questions from the 2025 Post Utme Crawford University Accounting examination.

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