9 Which of the following statements is/are correct?

(1) A statement of cash flows prepared using the direct method produces a different figure to net cash from operating

activities from that produced if the indirect method is used

(2) Rights issues of shares do not feature in a statement of cash flows

(3) A surplus on revaluation of a non-current asset will not appear as an item in a statement of cash flows

(4) A profit on the sale of a non-current asset will appear as an item under cash flows from investing activities in the

statement of cash flows

A 1 and 3 only

B 3 and 4 only

C 2 and 4 only

D 3 only

10 A company receives rent from a large number of properties. The total received in the year ended 30 April 20X6 was

$481,200.

The following were the amounts of rent in advance and in arrears at 30 April 20X5 and 20X6:

30 April 20X5 30 April 20X6

$ $

Rent received in advance 28,700 31,200

Rent in arrears (all subsequently received) 21,200 18,400

What amount of rental income should appear in the companys income statement for the year ended 30 April

20X6?

A $486,500

B $460,900

C $501,500

D $475,900

11 Which of the following are differences between sole traders and limited liability companies?

(1) A sole traders financial statements are private and never made available to third parties; a companys financial

statements are sent to shareholders and may be publicly filed

(2) Only companies have share capital

(3) A sole trader is fully and personally liable for any losses that the business might make

(4) Only drawings would appear in a sole traders financial statements

A 1 and 4 only

B 2, 3 and 4

C 2 and 3 only

D 1, 3 and 4