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Financial Statement Analysis
Quick questions on Statement of cash flows explained: H2 Principles of Accounting
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are the three activity categories?Show answer
The three categories sum to the net change in cash and cash equivalents, which reconciles the opening and closing cash balances.
What is the indirect method for operating cash?Show answer
Operating cash flow is usually found by the indirect method, starting from operating profit and adjusting:
What is q1?Show answer
Classify these flows: sale of a building, cash paid to suppliers, loan raised. [3 marks]
What is q2?Show answer
Operating profit is \50\,000\, and receivables rose \4\,000$. Find cash generated from operations (before interest and tax). [3 marks]
What is q3?Show answer
Explain why depreciation is added back in the operating section. [2 marks]
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