During Year 2, Chico Company earned $1,950 of cash revenue, paid $1,600 of cash expenses, and paid a $150 cash dividend to its owners. Based on this information alone,which of the following statements is not true?
A)Net income amounted to $350.
B)Total assets increased by $200.
C)Cash inflow from operating activities was $350.
D)Cash outflow from financing activities was $200.

Question

Quizplus · Accepted Answer

Based on the information given, there is no indication of any financing activities that occurred during the year, so it cannot be concluded that there was any cash outflow from financing activities. Therefore, option D is not true. Options A, B, and C are all true based on the given information.

During Year 2, Chico Company Earned $1,950 of Cash Revenue