Which of the following has the effect of increasing cash flows from operating activities?

Dividend paid.

Tax paid.

Interest paid.

Interest expense.

Which of the following has the effect of increasing cash flows from investing activities?

Acquisition of property, plant and equipment.

Increase in investments in subsidiaries.

Loans to subsidiaries.

Proceeds from disposal of property, plant and equipment.

Which of the following has the effect of increasing cash flows from financing activities?

Proceeds from issue of share capital.

Payment of lease liabilities.

Acquisition of non-controlling interests.

Repayment of loan from associate.

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

Taking a bank loan none increase

Acquisition of a non-current asset on cash terms none decrease

Purchasing inventories on credit terms none decrease

Selling inventories on cash terms increase increase