A Business Entity Reports,for a Complete Accounting Period,a Cash Flow

question 19

Multiple Choice

A business entity reports,for a complete accounting period,a cash flow from operations at 12% of sales revenue,a cash flow from investing representing an outflow of 50% of cash flow from operations and a cash inflow from financing is equal to half the absolute value of the cash flow from investing.The gross margin ratio is 40%,net profit at 100 CU represents a quarter of the gross margin.If the beginning cash balance was 45 CU,what is the ending cash balance.

• A) 145 CU
• B) 135 CU
• C) 120 CU
• D) 90 CU

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Definitions:

Accounting Partnership

A business arrangement where two or more individuals practice accounting together, sharing responsibilities, profits, and liabilities.

Legal Position

indicates an individual's or entity's standing or status in relation to the law, including rights, obligations, or liabilities.

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with terms and objectives set out in a Partnership Agreement.

Corporation

A legal entity separate from its owners, with its rights and liabilities, that is formed to conduct business or other activities.