The Following Information Is Taken from the Financial Statements of Cyrus

question 29

Multiple Choice

The following information is taken from the financial statements of Cyrus Ltd for the year ended 30 June 2016.

Dividends of $100 000 were declared during the year, and the balances in the dividends payable account at the beginning and end of the year were $15 000 and $25 000 respectively. What amount would be reported as payment of dividends in the cash flows from the financing activities section of the statement of cash flows?

• A) $90 000
• B) $25 000
• C) $100 000
• D) $110 000

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Definitions:

Production Possibilities Frontier

A graph showing all the highest production potentials for two products, considering a set of inputs that includes resources and various factors.

Trade-offs

The concept that decisions typically involve sacrificing one aspect, quality, or goal in favor of another.

Opportunity Cost

Foregoing the chance for potential earnings from other routes when one is selected.

Bushels of Corn

A unit of measurement used in agriculture, particularly in the United States, to quantify volumes of corn production and trade.