Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of financial position?

It shows the entity's ability to generate cash and to meet its short-term obligations, information not directly visible from the income statement alone.

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A Level Accounting

Statement of Cash Flows Questions and Answers

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Question 1 of 5Statement of cash flows

Medals Limited's machinery had accumulated depreciation of $340 000 at the start of the year and$ 450 000 at the end of the year, with no machinery disposed of during the year. What was the depreciation charge on machinery for the year ended 31 December 2018?

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Paper 3Statement of cash flows
Medals Limited's machinery had accumulated depreciation of 340 000 at the start of the year and 450 000 at the end of the year, with no…
Paper 3Statement of cash flows
Medals Limited sold vehicles that had originally cost 75 000 for 12 000. The accumulated depreciation on these vehicles at the date of sale…
Paper 3Statement of cash flows
Medals Limited sold buildings that had originally cost 240 000 for 320 000, realising a profit on disposal of $101 000. What was the net…
Paper 3Statement of cash flows
Medals Limited's inventory was 400 000 at 31 December 2017 and 470 000 at 31 December 2018. What was the increase in inventory during the…
Paper 3Statement of cash flows
Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of…

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Statement of Cash Flows Questions and Answers

Test yourself on this topic

Medals Limited's machinery had accumulated depreciation of $340 000 at the start of the year and$ 450 000 at the end of the year, with no machinery disposed of during the year. What was the depreciation charge on machinery for the year ended 31 December 2018?

Medals Limited sold vehicles that had originally cost $75 000 for$ 12 000. The accumulated depreciation on these vehicles at the date of sale was $58 000. What was the loss on disposal of the vehicles?

Medals Limited sold buildings that had originally cost $240 000 for$ 320 000, realising a profit on disposal of $101 000. What was the net book value of the buildings at the date of sale?

Medals Limited's inventory was $400 000 at 31 December 2017 and$ 470 000 at 31 December 2018. What was the increase in inventory during the year, as used in preparing the statement of cash flows?

Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of financial position?

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Statement of Cash Flows Questions and Answers

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Medals Limited sold vehicles that had originally cost 75000for75 000 for 75000for12 000. The accumulated depreciation on these vehicles at the date of sale was $58 000. What was the loss on disposal of the vehicles?

Medals Limited sold buildings that had originally cost 240000for240 000 for 240000for320 000, realising a profit on disposal of $101 000. What was the net book value of the buildings at the date of sale?

Medals Limited's inventory was 400000at31December2017and400 000 at 31 December 2017 and 400000at31December2017and470 000 at 31 December 2018. What was the increase in inventory during the year, as used in preparing the statement of cash flows?

Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of financial position?

Questions on this topic

More topics in this subject

Practise this topic in the app

Medals Limited sold vehicles that had originally cost $75 000 for$ 12 000. The accumulated depreciation on these vehicles at the date of sale was $58 000. What was the loss on disposal of the vehicles?

Medals Limited sold buildings that had originally cost $240 000 for$ 320 000, realising a profit on disposal of $101 000. What was the net book value of the buildings at the date of sale?

Medals Limited's inventory was $400 000 at 31 December 2017 and$ 470 000 at 31 December 2018. What was the increase in inventory during the year, as used in preparing the statement of cash flows?