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:

International Transactions

Trades, investments, and other financial actions that cross national borders.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of each currency.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and investments.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to a specified amount of gold, facilitating stable exchange rates and limiting inflation.