Accounting Multiple Choice Question – 11 October 2024

Which of the following assertions about cash flow statements is/are correct?

1. A cash flow statement prepared using the direct method produces a different figure for net cash flow from operating activities to that produced when the indirect method is used.
2. Capital introduction do not feature in cash flow statements.
3. A bonus issue will not appear as an item in a cash flow statement of a sole trader
4. A profit on the sale of a non-current asset will appear as an item under Capital Expenditure in a cash flow statement.

Select ONE answer:

1. 1 and 4
2. 2 and 3
3. 3 Only
4. 2 and 4

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
4. Not correct

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