Accounting grade 12

What is the main purpose of a cash flow statement?

• To reflect on how cash was generated

• To determine the financial position of a company

• To determine the cash surplus or deficit of a business

• To reflect on how cash was utilized

Operating activities are .......... related to the main objective of a company

Which activity does the following transaction fall under;

Buy good on credit

• Investing activity

• Financing activity

• Operating activity

• Credit activity

Which of the following item is included in note 1, reconciliation between profit before taxation and cash generated from operations?

• Net profit before tax

• Sundry expenses

• Interest paid

• Sales

An .... in trade and other receivables indicates an outflow of money

From changes in working capital, what does a decrease in inventory signifies?

• An inflow of cash

• A cash deficit

• A cash surplus

• An outflow of cash