Caroline, Inc. had the following transactions during 2019:
A) £600,000 provided by financing activities.
B) £48,000 provided by financing activities.
C) £48,000 used by financing activities.
D) £428,000 used by financing activities.

Question

Quizplus · Accepted Answer

Option A and D suggest that more money was used by financing activities than provided, which is not ideal for a company. Option C suggests that only £48,000 was used by financing activities, which may not be sufficient for the needs of the company. Option B, on the other hand, suggests that Caroline, Inc. received a net amount of £48,000 from financing activities, indicating that they were able to secure some level of financing while not overspending on it.

Caroline, Inc. Had the Following Transactions During 2019