題目：
Evergreen Co owns 35% of the ordinary shares of Deciduous. What is the correct accounting treatment of the revenues and
costs of Deciduous for reporting period in the consolidated statement of profit or loss of the Evergreen group
The revenues and costs of Deciduous are added to the revenues and costs of Evergreen on a
line by line basis.
35% of the profit after tax of Deciduous should be added to Evergreen’s consolidated profit
before tax.
C5% of the revenues and costs of Deciduous are added to the revenues and costs of Evergreen
on a line by line basis.
The revenues and costs of Deciduous are added to the revenues and costs of Evergreen Co on a line by line basis, then 65% of the profit after tax is deducted so that only Evergreen Co’s share remains in the consolidated financial statements.
題目：
Fanta Co acquired 100% of the ordinary share capital of Tizer Co on 1 October 20X7.
On 31 December 20X7 the share capital and retained earnings of Tizer Co were as follows:
$'000
Ordinary shares of $1 each 400
Retained earnings at 1 January 20X7 100
Retained profit for the year ended 31 December 20X7 80
580
The profits of Tizer Co have accrued evenly throughout 20X7. Goodwill arising on the acquisition of Tizer Co was $30,000.
What was the cost of the investment in Tizer Co
$400,000
$580,000
$610,000
$590,000
題目：
What figure for non-controlling interest should appear in the consolidated statement of financial position of the Hilton group at 31 December 20X3
$77,000
$85,000
$73,000
$105,000
題目：
Which of the following companies are subsidiaries of Gamma Co
Zeta Co: Gamma Co owns 51% of the non-voting preference shares of Zeta Co Iota Co: Gamma Co has 3 representatives on the board of directors of Iota Co. Each director can cast 10 votes each out of the total of 40 votes at board meetings.
Kappa Co: Gamma Co owns 75% of the ordinary share capital of Kappa Co, however Kappa Cois located overseas and is
subject to tax in that country.
Zeta Co, Iota Co and Kappa Co
Zeta Co and Kappa Co
Iota Co and Kappa Co
Zeta Co and Iota Co
題目：
What amount should appear in the group's consolidated statement of financial position at 31 December 20X2 for goodwill
$52,000
$80,000
$122,000
$212,000
題目：
Which one of the following statements correctly identifies a valid disadvantage to users of financial statements of the sta
tement of cash flows
Under IAS 7 Statement of cash flows, an entity may use any format for their statement.
There is an opportunity to reclassify some cash outflows that might have been reported in the
operating section as investing cash outflows.
Under IAS 7 Statement of cash flows the statement of cash flows may cover a different period of time to the other financial statements.
Cash flow figures are more open to manipulation than the profit figure.
題目：
Toots Co has made healthy profits for the past year, although at times the company has been close to running out of cash.
Because Toots Co is profitable, Adam, their accountant is unconcerned by the cash shortage. Jo, the financial controller at
Toots Co, is concerned. Jo tells Adam, ‘profits are fine on paper, but in the real world cash is king’. Jo believes Toots Co
needs to take a more proactive approach to cash flow management.
Adam and Jo have two different views. Who is correct, and why
Adam is correct. A profitable business should not waste management time on cash flow issues.
Adam is correct. A profitable business will always survive and prosper.
Jo is correct. Proactive cash flow management is required under IAS 7 Statements of Cash
Flows.
Jo is correct. A business that does not have cash available to fund operations is likely to fail.
題目：
Which one of the following statements is correct
If a business makes a profit, it has positive cash flow.
If a business makes a loss, it has negative cash flow.
A business may make a profit but have negative cash flow.
A business that breaks even has cash inflows equal to cash used
題目：
Big Time Co had the following transactions during the year.
Purchases from suppliers were $18,500, of which $2,550 was unpaid at the year end. Brought forward payables were
$1,000.
Wages and salaries amounted to $9,500, of which $750 was unpaid at the year end. The financial statements for the
previous year showed an accrual for wages and salaries of $1,500.
Interest of $2,100 on a long term loan was paid in the year.
Sales revenue was $33,400, including $900 receivables at the year end. Brought forward receivables were $400.
Interest on cash deposits at the bank amounted to $175.
Using the direct method, what is Big Time Co's cash flow from operating activities
$3,425
$3,775
$1,425
$6,775
題目：
A company sold warehouse premises at a loss during a financial period. How would this transaction be included in a statement of cash flows for the period that complies with IAS 7 Statement of Cash F/ows and that uses the indirect method to present
cash flows from operating activities
Loss on disposal Proceeds from sa/e in cash flows from
Deduct as an adjustment in the calculation of cash flows from operating activities
Include
in cash flows from investing activities
BDeduct as an adjustment in the calculation of cash flows from operating activities
Include
in cash flows from operating activities
Add as an adjustment in the calculation of cash flows from operating activities
Include
in cash flows from investing activities
Add as an adjustment in the calculation of cash flows from operating activities
Include
in cash flows from operating activities
題目：
The following information is available about the plant, property and equipment of Lok Co, for the year to 31 December 20X3.
$!000
Carrying amount of assets at beginning of the year 462
Carrying amount of assets at end of the year 633
Increase in revaluation surplus during the year 50
Disposals during the year, at cost110
Accumulated depreciation on the assets disposed of 65
Depreciation charge for the year 38
What will be included in cash flows from investing activities for the year, in a statement of cash flows that complies with IAS 7 Statement of Cash FlOWS
$104,000
$159,000
$166,000
$204,000
題目：
Which one of the following statements is correct, with regard to the preparation of a statement of cash flows that complies with IAS 7 Statement of Cash Flows
A statement of cash flows prepared using the direct method produces the same figure for net
cash from operating activities as a statement produced by the indirect method.
BAn increase in a bank overdraft during the accounting period is included within cash flows from
financing activities.
A profit on the sale of equipment is included within cash flows from investing activities.
A surplus on the revaluation of property will appear within cash flows from investing activities.
題目：
Which, if any, of the following items could be included in ‘cash flows from financing activities’ in a statement of cash flows that complies with IAS 7 Statement of Cash Flows
1Interest received
2Taxation paid
3Proceeds from saleof property
1only
2only
3only
None of them
題目：
The following extract is taken from a draft version of company’s statement of cash flows, prepared by a trainee accountant.
$000
Net cash flow from operating activities Profit before tax Depreciation charges 484
Profit on sale of property, plant and equipment 327
Increase in inventories 35
Decrease in trade and other receivables (74)
Increase in trade payables (41)
Cash generated from operations29
760
Four possible mistakes that may have been made by the trainee accountant are listed below.
1The profit on sale of property, plant and equipment should be subtracted, not added.
2The increase in inventories should be added, not subtracted.
3The decrease in trade and other receivables should be added, not subtracted.
4The increase in trade payables should be subtracted, not added.
Which of the four mistakes did the trainee accountant make when preparing the draft statement
1and2 only
1and3 only
2and4 only
3and4 only
題目：
A draft statement of cash flows contains the following calculation of cash flows from operating activities:
$m
Profit before tax 13
Depreciation2
Decrease in inventories (3)
Decrease in trade and other receivables 5
Decrease in trade payables 4
Net cash inflow from operating activities 21
Which of the following corrections need to be made to the calculation
1Depreciation should be deducted, not added.
2Decrease in inventories should be added, not deducted.
3Decrease in receivables should be deducted, not added.
4Decrease in payables should be deducted, not added
1and3
2and3
1and4
2and4
題目：
IAS 7 requires the statement of cash flows to open with the calculation of net cash from operating
activities, arrived at by adjusting net profit before taxation.
Which one of the following lists consists only of items which could appear in such a calculation
Depreciation, increase in receivables, decrease in payables, proceeds from sale of equipment, increase in inventories
Increase in payables, decrease in inventories, profit on sale of plant, depreciation, decrease in
receivables
Increase in payables, proceeds from sale of equipment, depreciation, decrease in receivables,
increase in inventories
Depreciation, interest paid, proceeds from sale of equipment, decrease in inventories
題目：
An extract from a statement of cash flows prepared by a trainee accountant is shown below.Cash flows from operating
activitiesNet profit before taxationAdjustments for: DepreciationOperating profit before working capital changesDecrease in inventoriesIncrease in receivablesIncrease in payablesCash generated from operationsWhichof the following criticisms of
this extract are correct
1Depreciation charges should have been added, not deducted.
2Decrease in inventories should have been deducted, not added.
3Increase in receivables should have been added, not deducted.
4Increase in payables should have been added, not deducted.
2 and 4
2 and 3
1 and 3
1 and 4
題目：
Whichof the following assertions about statement of cash flows is/are correct
1A statement of cash flows prepared using the direct method produces a different figure foroperating cash flow from that
produced if the indirect method is used.
2Rights issues of shares do not feature in statements of cash flows.
3A surplus on revaluation of a non-current asset will not appear as an item in a statement of cashflows.
4A profit on the sale of a non-current asset will appear as an item under Cash Flows from InvestingActivities in a statement
of cash flows.
1 and 4
2 and 3
3 only
2 and 4
題目：
In preparing a company's statement of cash flows complying with IAS 7 Statements of CashFIOWS
which,if any, of the following items could form part of the calculation of cash flow from financingactivities
1Proceeds of sale of premises
2Dividends received
3Bonus issue of shares
1 only
2 only
3 only
None of them
題目：
Part of a company's draft statement of cash flows is shown below:
$!000
Net profit before tax 8,640
Depreciation charges (2,160)
Proceeds of sale of non-current assets 360
Increase in inventory (330)
Increase in accounts payable 440
The following criticisms of the above extract have been made:
1Depreciation charges should have been added, not deducted.
2Increase in inventory should have been added, not deducted.
3Increase in accounts payable should have been deducted, not added.
4Proceeds of sale of non-current assets should not appear in this part of the statement of cash flows.
Which of these criticisms are valid
2 and 3 only
1 and 4 only
1 and 3 only
2 and 4 only
題目：
In the course of preparing a company's statement of cash flows, the following figures are to be included in the calculation of
net cash from operating activities
$
Depreciation charges 980,000
Profit on sale of non-current assets 40,000
Increase in inventories 130,000
Decrease in receivables 100,000
Increase in payables 80,000
What will the net effect of these items be in the statement of cash flows
$AAddition to operating profit890,000
Subtraction from operating profit890,000
Addition to operating profit1,070,000
Addition to operating profit990,000
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