a-4, b-3, c-2, d-1
a-2, b-3, c-4, d-1
a-3, b-2, c-4, d-1
a-3, b-4, c-1, d-2
Answer is Wrong!
Answer is Right!
The correct answer is: C. a-3, b-2, c-4, d-1
- a. Short-term liabilities are liabilities that are due within one year. They include accounts payable, notes payable, and accrued expenses.
- b. Current liabilities are liabilities that are due within one year or the operating cycle, whichever is longer. They include accounts payable, notes payable, and accrued expenses.
- c. Amount of creditors is the total amount of money that a company owes to its creditors. It is calculated by adding up the company’s accounts payable, notes payable, and accrued expenses.
- d. Payment of dividends is a distribution of cash or other assets to shareholders. It is a financing activity because it involves using cash to pay off debt or equity.
Cash flow statement is useful for financial planning. It shows how a company generates and uses cash over a period of time. This information can be used to make decisions about future investments, financing, and dividends.
Increase in current liabilities is a source of cash. This is because current liabilities are due within one year, so they can be paid off using cash on hand.
Increase in the amount of creditors results in increase in cash. This is because when a company borrows money, it receives cash. The amount of cash that a company has is important because it affects its ability to pay its bills and make investments.