Q1)Last years statement of cash flows for Ahmad company reported large negative figure for cash generated rom operating activities but the income statement reported a large profit before taxation or the year. he company uses indirect method to derive the net cash from operating activities. Which of the following may account for this?

A. High depreciation charge

B. Large payment for non-current assets

c. large loss n disposal

d. none of the above

Q2)Ahmad Co. purchases a new piece of plant, costing $42000. Its expected useful lifetime is 6 years, at which point it is anticipated that it will be capable of resale for $6000. If the straight -line method of depreciation is used , what is the carrying value(net book value) of the plant at the end of three years?

A. $21,000

B. $30,000

C. $24,000

D. $18,000