A Summary of the Entries in the Cash Ledger Account

question 43

Multiple Choice

A summary of the entries in the Cash ledger account of Staple Ltd for the month of January was as follows:

What was the cash flow from investing activities of Staple Ltd?

• A) ($5000)
• B) ($45 000)
• C) ($65 000)
• D) ($55 000)

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Definitions:

Account Payable

The liability created by a purchase on account.

Solvency Analysis

An assessment of a company's ability to meet its long-term financial obligations.

Noncurrent Liabilities

Financial obligations of a company that are not due to be settled within one year, including long-term loans, bonds payable, and long-term lease obligations.

Current

In finance, "current" typically refers to assets and liabilities that are expected to be realized or settled within one year from the reporting date.