考試類型:
If a material event occurs after the reporting date but before the financial statements are authorised for issue outside the
organisation, and this event does NOT require adjustment, what information should be disclosed in the financial statements?
Which of the following items could appear in a company's statement of cash flows?
1?Surplus on revaluation of non-current assets
2?Proceeds of issue of?shares
3?Proposed dividend
4?Irrecoverable debts?written off
5?Dividends received
Part of the process of preparing a company's statement of cash flows is the calculation of cash inflow from operating activities.
Which of the following statements about that calculation (using the indirect method) are correct?
1?Loss on sale of operating non-current assets should be deducted from net profit before taxation.
2?Increase in inventory should be deducted from operating profits.
3?Increase in payables should be added to operating profits.
4?Depreciation charges should be added to net profit before taxation.
In the course of preparing a company's statement of cash flows, the following figures are to be included in the calculation of
net cash from operating activities
??????????????????????????????????????????????????????????????? $
Depreciation charges????????????????????? ?980,000
Profit on sale of non-current assets ? ?40,000
Increase in inventories???????????????????? ?130,000
Decrease in receivables???????????????? ?? 100,000
Increase in payables???????????????????? ????? 80,000
What will the net effect of these items be in the statement of cash flows?
?Part of a company's draft statement of cash flows is shown below:
??????????????????????????????????????????????????????????? ?$!000
Net profit before tax???????????????????????????? 8,640
Depreciation charges???????????????????????? (2,160)
Proceeds of sale of non-current assets? 360
Increase in inventory???????????????????????????? (330)
Increase in accounts payable??????????????? ?440
The following criticisms of the above extract have been made:
1?Depreciation charges should have been added, not deducted.
2?Increase in inventory should have been added, not deducted.
3?Increase in accounts payable should have been deducted, not added.
4?Proceeds of sale of non-current assets should not appear in this part of the statement of cash flows.
Which of these criticisms are valid?
In preparing a company's statement of cash flows complying with IAS 7 Statements of Cash?FIOWS ?
?which,?if any, of the following items could form part of the calculation of cash flow from financing?activities?
??1?Proceeds of sale of premises
?2?Dividends received
?3?Bonus issue of shares?
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.?
An extract from a statement of cash flows prepared by a trainee accountant is shown below.?Cash flows from operating
activities??Net profit before taxation?Adjustments for: Depreciation?Operating profit before working capital changes?Decrease in inventories?Increase in receivables?Increase in payables?Cash generated from operations?Which?of the following criticisms of
this extract are correct?
1?Depreciation charges should have been added, not deducted.
2?Decrease in inventories should have been deducted, not added.
3?Increase in receivables should have been added, not deducted.
4?Increase in payables should have been added, not deducted.
?Which of the following items could appear in a company's statement of cash flows?
1?Proposed dividends
2?Rights issue?of shares
3?Bonus issue?of shares
4?Repayment of loan
IAS 7 requires the statement of cash flows to open with the calculation of net cash from operating
activities, arrived at by adjusting net profit before taxation.
Which one of the following lists consists only of items which could appear in such a calculation?