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UI Post-UTME Commerce 2025 (Model questions) Question 11

Question 11

Business Calculations

The following information relates to Segun Traders for the month of March: Opening cash balance: ₦25,000 Cash sales: ₦120,000 Cash purchases: ₦75,000 Salaries paid: ₦18,000 Rent received: ₦6,000 Drawings: ₦10,000. Which of the following are TRUE?
I. Total receipts during March = ₦126,000
II. Total payments during March = ₦103,000
III. Closing cash balance = ₦48,000
IV. Net cash flow from operations = ₦33,000

  1. A.I, II and III only
  2. B.I and III only
  3. C.II and IV only
  4. D.All of the above
Show the answer and explanation

Answer: A (I, II and III only)

Explanation

Receipts = 120,000 + 6,000 = ₦126,000; payments = 75,000 + 18,000 + 10,000 = ₦103,000; closing = 25,000 + 126,000 − 103,000 = ₦48,000. Operating cash flow = 120,000 − 75,000 − 18,000 = ₦27,000, so IV is false.