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

Preparation of financial statements — practice question

The items below were extracted from the financial statements of a limited company for a period. Rise in trade receivables: $6\,000 Rise in trade payables: $4\,000 Loan repaid: $10\,000 What impact did these items have on the net cash inflow or outflow for the period?

  • A$8000 outflow
  • B$12\,000 inflow
  • C$12\,000 outflow
  • D$20\,000 outflow

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