快速查题-Chapter20-23试题

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?

The following extract is from the financial statements of Pompeii, a limited liability company at

What is the cash flow from financing activities to be disclosed in the statement of cash flows for the year ended 31 October

20X9?

A draft statement of cash flows contains the following calculation of cash flows from operating activities:

                                                                                            $m

Profit before tax                                                                   13

Depreciation                                                                         2

Decrease in inventories                                                       (3)

Decrease in trade and other receivables                              5

Decrease in trade payables                                                  4

Net cash inflow from operating activities                              21

Which of the following corrections need to be made to the calculation?

1 Depreciation should be deducted, not added.

2 Decrease in inventories should be added, not deducted.

3 Decrease in receivables should be deducted, not added.

4 Decrease in payables should be deducted, not added