I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

31 December 20X1. 

(13 marks) 

(b) 

Which of the following items could appear in Flail Co's statement of cash flows?  

1 

Surplus on revaluation of non-current assets  

2 

Proceeds of issue of shares  

3 

Proposed dividend  

4 Dividends 

received 

A 1 

and 

2 

B 

3 and 4  

C 1 

and 

3 

D 2 

and 

4 

(2 marks) 

Total marks for the question 

(15 marks) 

 

 

86 

Which of the following statements is/are correct?  

1 

An increase in a loan made to another company will be classified under investing cash 

flows. 

2 

An increase in a loan from a bank will be classified under investing cash flows. 

3 

Bonus issues of shares do not feature in statements of cash flows.  

4 

A loss on the sale of a non-current asset will be deducted from net profit in order to 

calculate operating cash flows using the indirect method.  

A 

1 and 2  

B 

1 and 3  

C 

3 only  

D 

1 and 4  

 

(2 marks) 

87 

How should the following investments be accounted for in the consolidated financial