Day: August 9, 2022

The following items appear in a company’s Profit and Loss Account.

• profit, after charging or crediting the following items – £16 800
• annual depreciation charge – £6 000
• loss on sale of tangible assets – £1 800
• interest paid – £7 500
• profit on sale of tangible assets – £1 100

What is the cash flow from operating activities?

Select ONE answer:

1. £15 700
2. £29 600
3. £31 000
4. £33 200

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £16,800 + £6 ,000 + £7,500 + £1,800 – £1,100
4. Not correct

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