Which of the following statements are correct? (1) A statement of cash flows prepared using
FINANCIAL
POST UTME OAU
Which of the following statements are correct? (1) A statement of cash flows prepared using the direct method produces a different figure for operating cash flow from that produced if the indirect method is used. (2) Rights issues do not feature in statements of cash flows. (3) A surplus on revaluation of a non-current asset will not appear as an item in a statement of cash flows. (4) A profit on sale of a non-current asset will appear as an item under cash flows from investing activities in a statement of cash flows.
- A) 1 and 4
- B) 2 and 3
- C) 3 only
- D) 2 and 4
Correct Answer: C) 3 only
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