A Company Reported the Following Information for a Financial Year

question 4

Multiple Choice

A company reported the following information for a financial year:

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.

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Definitions:

Turned into Cash

The process of converting assets or investments into liquid funds or cash.

Obligations

Represents legal or financial responsibilities or duties that an entity is required to fulfill, such as paying debts or performing services under a contract.

Withdraw

Withdrawing funds from a savings or investment account.

Book Equity

The amount of equity in a company as recorded in the financial statements, reflecting the difference between assets and liabilities.