Use the Information Given Below to Answer the Following Questions

question 49

Multiple Choice

Use the information given below to answer the following questions:
During the year, Penso Ltd received $50 000 from its customers, $5000 for the sale of a motor vehicle and $20,000 for the issue of shares. It paid $27,000 to suppliers and employees, $3000 for income tax and $50,000 for new machinery. In addition, it paid out $12 000 to redeem bonds. Its cash balance at the commencement of the year was $22,000.
-What were the cash flows from financing activities?

• A) $20 000
• B) $8000
• C) ($12 000)
• D) ($28,000).

---

Definitions:

Share Value

Refers to the identified worth of a single share of a company's stock, determined by market activities and influencing investor decisions.

Shareholder Vote

A formal decision-making process by which shareholders cast ballots on corporate matters as per their share ownership.

Unanimous Approval

A decision-making process where all participants agree on a specific outcome or decision.

Disbanding Corporation

The legal process of dissolving a corporation, concluding its affairs, and liquidating its assets.