Which of the following statements is correct in relation to preparation of a statement of cash flows?

(a) The amount reported as cash generated by operating activity will differ depending on whether the Statement of cash flows is prepared on the direct or indirect method

(b) On the indirect method of preparing Statement of cash flows depreciation is added because depreciation generates cash

(c) Revaluation gain will appear as a cash inflow

(d) Gain on disposal of an asset is shown as a source of cash inflow

Transcribed Image Text:

w None xa only y b&c Zc & d