Which of the following assertions about statement of cash flows is/are correct? 1
A、statement of cash flows prepared using the direct method produces a different figure for operating cash flow from that produced if the indirect method is used. 2 Rights issues of shares do not feature in statements 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 a statement of cash flows.
A、1 and 4
B、2 and 3
C、3 only
D、2 and 4
A、statement of cash flows prepared using the direct method produces a different figure for operating cash flow from that produced if the indirect method is used. 2 Rights issues of shares do not feature in statements 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 a statement of cash flows.
A、1 and 4
B、2 and 3
C、3 only
D、2 and 4
【参考答案及解析】
1 The direct and indirect methods will give the correct figure. 2 A rights issue of shares is a cash flow. 4 The profit on sale of a non-current asset appears as an adjustment to profit in order to reach net cash flow from operations.
1 The direct and indirect methods will give the correct figure. 2 A rights issue of shares is a cash flow. 4 The profit on sale of a non-current asset appears as an adjustment to profit in order to reach net cash flow from operations.