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

Preparation of financial statements — practice question

Consult Source A2 in the insert.
(a)[19]

Prepare the statement of cash flows for the year ending 31 December 2019. (Ignore taxation.)

(b)[3]

Explain how a premium on an issue of shares is treated in a statement of cash flows compared with the books of account of a company.

(c)[3]

State three reasons a company may choose to prepare a statement of cash flows.

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