Use the Following Information to Answer Questions
a Company

question 20

Multiple Choice

Use the following information to answer questions
A company reported the following information for a financial year:
£
$\begin{array}{ll}\text {Profit from ordinary activities before income tax expense }&72,000 \\\text {Income tax expense }&20,000 \\\text {Depreciation expense }&8,000 \\\text { Issue of shares}&40,000 \\\text { Loan made to another company}&6,000 \\\text {Increase in trade receivables }&1,000 \\\text { Decrease in inventories}&2,000 \\\text { Cash received from loans receivable}& 4,000\\\text {Dividends paid }&2,000 \\\end{array}$

-What is the net cash inflow (outflow) from financing activities?

• A) £38 000 net cash inflow;
• B) £40,000 net cash inflow;
• C) £42,000 net cash inflow;
• D) £(2000) net cash outflow.

Distinguish between assets, liabilities, capital, revenue, expenses, and withdrawals.

Apply the rules of debit and credit to various accounting transactions.

Calculate the ending balances of accounts using transaction information.

Understand the structure and purpose of a ledger and how it reflects business transactions.

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Definitions:

Regulation of Transcription

The method of managing RNA synthesis from a DNA template, an essential phase in the expression of genes.

mRNA Processing

The series of modifications mRNA undergoes after transcription, including splicing, 5' capping, and addition of a poly-A tail, making it ready for translation.

mRNA Transport

The process of transporting messenger RNA molecules from the nucleus to the cytoplasm where they are translated into proteins.

Chromatin

A structure composed of DNA and predominant proteins, particularly histones, which create chromosomes inside the nucleus of cells belonging to eukaryotes.