If the Opening Balance of Equity Is $45,000, the Closing

question 55

Multiple Choice

If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid (assume all dividends declared have been paid) which will appear as a financing outflow in the statement of cash flows.

• A)$15,000.
• B)$42,000.
• C)$12,000.
• D)Nil.

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Definitions:

Serial Bonds

A sequence of small bond issues of progressively longer maturity.

Primary Market

The market where firms raise financial capital.