Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

(a)[2]

Explain one reason why the details in a business’s statement of cash flows are important to its shareholders.

(b)[3]

Calculate the profit for the year in 2023.

(c)[14]

Prepare the statement of cash flows for the year ended 31 December 2023 in accordance with IAS 7.

(d)[6]

Analyse how the cash position of K plc changed during the year 2023.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Indicates whether the business has enough cash to continue operating

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