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

Preparation of financial statements — practice question

Source A4 on R Limited, which carries no inventory.
(a)[1]

Identify the type of business that holds no inventory of goods for resale.

(b)[18]

Prepare the statement of cash flows for R Limited for the year ended 31 December 2018 under IAS 7. (Ignore taxation.)

(c)[1]

State why a revaluation of a non-current asset is not shown in a statement of cash flows.

(d)[5]

Discuss the possible causes of this.

Worked solution & mark scheme

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