Evaluate the usefulness of the statement of cash flows in terms of any four of the qualitative
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Question:
- Evaluate the usefulness of the statement of cash flows in terms of any four of the qualitative characteristics of useful information suggested by the IASB's conceptual framework.
(12 marks)
- Discuss with explanations whether the following items are cash, cash equivalents, investing activities or financing:
- Funds held in a bank account but 70 days' notice is required for withdrawal.
- A loan from the bank for 40 days for a specific purpose.
- A £50,000 investment with a bank with 60 days to maturity but the final value is subject to significant risk as it is based on the index.
- An account held with the bank where withdrawal requires 105 days' notice.
- An overdraft with the bank which is seen as short term and part of everyday cash flow of the entity.
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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