Question
1. Which of the following has the effect of increasing cash flows from operating activities? A. Dividend paid. B. Tax paid. C. Interest paid D.
1. Which of the following has the effect of increasing cash flows from operating activities? A. Dividend paid. B. Tax paid. C. Interest paid D. Interest expense. 2. Which of the following has the effect of increasing cash flows from investing activities? A. Acquisition of property, plant and equipment B. Increase in investments in subsidiaries. C. Loans to subsidiaries. D. Proceeds from disposal of property, plant and equipment. 3. Which of the following has the effect of increasing cash flows from financing activities? A. Proceeds from issue of share capital. B. Payment of lease liabilities. C. Acquisition of non-controlling interests. D. Repayment of loan from associate. 4. The following are statements about the immediate effect of the following accounting events on profit and on cash. Which statement is FALSE? Effect on profit Effect on cash A. Taking a bank loan none increase B. Acquisition of a non-current asset on cash terms none decrease C. Purchasing inventories on credit terms none decrease D. Selling inventories on cash terms increase increase 5. Which of the following should not be disclosed in the Balance Sheet (Statement of Financial Position)? A. Opening inventories. B. Closing inventories. C. Cash at bank. D. Property, plant, and equipment.
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