Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Refer to Source C in the insert.
(a)[4]
State four purposes of a statement of cash flows.
(b)[5]
Calculate the profit from operations for the year ended 31 December 2024.
(c)[11]
Prepare the statement of cash flows for the year ended 31 December 2024 in accordance with IAS 7.
(d)[5]
Advise the directors on whether they ought to implement their plan. Support your answer with reasons.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Explains why profit does not always match movements in cash and cash equivalents.” …