During Year 2, Chico Company earned $2,750 of cash revenue, paid $1,200 of cash expenses, and paid a $700 cash dividend to its owners. Based on this information alone, which of the following statements is not true?
A)Net income amounted to $1,550
B)Total assets increased by $850
C)Cash inflow from operating activities was $1,550
D)Cash outflow from financing activities was $850

Question

Quizplus · Accepted Answer

The cash outflow from financing activities was $700, not $850, as the only financing activity mentioned is the payment of a $700 cash dividend.

During Year 2, Chico Company Earned $2,750 of Cash Revenue