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

Preparation of financial statements — practice question

At 31 March, the directors of Hank Limited issue statements of financial position.
(main)[10]
(a)[2]

Explain how a statement of cash flows differs from a cash budget.

(b)[10]

Prepare a statement of cash flows for Hank Limited for the year ended 31 March 2016 in accordance with IAS 7.

(c)[4]

Using the statement of cash flows, explain whether Hank Limited's cash position is strong or weak.

(d)[5]

Prepare a condensed schedule of non-current assets in note form as it would be shown in the published accounts for the year ended 31 March 2016.

(e)[4]

Advise the directors whether they ought to apply the International Accounting Standards when drawing up the published accounts. Support your answer.

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