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    The document contains two multiple choice questions about items that could appear on a company's cash flow statement and the correct statements about calculating cash inflow from operating activities using the indirect method. The first question asks which items could appear on a cash flow statement, with options including proceeds from share issues, dividends received, and proposed dividends. The second question asks which statements about calculating cash inflow from operating activities are correct, with options including deducting inventory increases and adding depreciation charges and increases in payables.

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    The document contains two multiple choice questions about items that could appear on a company's cash flow statement and the correct statements about calculating cash inflow from operating activities using the indirect method. The first question asks which items could appear on a cash flow statement, with options including proceeds from share issues, dividends received, and proposed dividends. The second question asks which statements about calculating cash inflow from operating activities are correct, with options including deducting inventory increases and adding depreciation charges and increases in payables.

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    11 views1 page

    Cash Flow

    Uploaded by

    husse fok
    The document contains two multiple choice questions about items that could appear on a company's cash flow statement and the correct statements about calculating cash inflow from operating activities using the indirect method. The first question asks which items could appear on a cash flow statement, with options including proceeds from share issues, dividends received, and proposed dividends. The second question asks which statements about calculating cash inflow from operating activities are correct, with options including deducting inventory increases and adding depreciation charges and increases in payables.

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    of 1

    Which of the following items could appear in a company’s cash flow statement?

    (1) Surplus on revaluation of non-current assets.


    (2) Proceeds of issue of shares.
    (3) Proposed dividend.
    (4) Bad debts written off.
    (5) Dividends received.
    A (1), (2) and (5) only
    B (2), (3), (4), (5) only
    C (2) and (5) only
    D (3) and (4) only
    Part of the process of preparing a company’s cash flow statement is the calculation of cash inflow from operating
    activities.
    Which of the following statements about that calculation (using the indirect method) are correct?
    (1) Loss on sale of operating non-current assets should be deducted from net profit before taxation.
    (2) Increase in inventory should be deducted from operating profits.
    (3) Increase in payables should be added to operating profits.
    (4) Depreciation charges should be added to net profit before taxation.
    A (1), (2) and (3)
    B (1), (2) and (4)
    C (1), (3) and (4)
    D (2), (3) and (4)

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