During the Year,Penso Ltd Received $50 000 from Its Customers,$5000

question 31

Multiple Choice

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)

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Definitions:

Enforceable

Capable of being imposed, executed, or upheld by law.

Parol Evidence Rule

A legal principle in contract law that prevents parties from modifying a written contract using oral or implied agreements not included in the original document.

Subsequent Agreements

Agreements made after the original agreement, which may modify or affect the terms of the original.

Basis of Authenticity

The foundation or evidence that verifies the genuineness or truth of something.