FR D Preparing single entity financial statements

Written by Fahad Mirza (ACCA)

ACCA · Financial Reporting · 6 questions

Name: ____________________   Date: ____________

1. In the indirect method, what is added back to profit before tax when calculating operating cash flow?

   • A Purchases of assets
   • B Depreciation
   • C Dividends paid
   • D Interest received

2. In a statement of cash flows, dividends paid are classified as:

   • A Operating activities
   • B Not included
   • C Investing activities
   • D Financing activities

3. An increase in inventories during the year has what effect on operating cash flow?

   • A It is shown as investing
   • B It reduces operating cash flow
   • C It has no effect
   • D It increases operating cash flow

4. Which statement reconciles opening and closing equity?

   • A The statement of cash flows
   • B The statement of changes in equity
   • C The notes
   • D The statement of financial position

5. A statement of financial position does not balance. What is the best first step?

   • A Look for items posted to only one side
   • B Adjust equity
   • C Delete the largest balance
   • D Change the closing inventory

6. Which item appears in investing activities?

   • A Payment of dividends
   • B Purchase of property, plant and equipment
   • C Issue of shares
   • D Repayment of a loan