Question

Which of the following will not be reported in the statement of cash flows?

a.Cash payments for plant assets during the year.
b.Cash receipts from sales of plant assets during the year.
c.The net change in plant assets during the year.
d.How acquisitions of plant assets during the year were financed.

Answer 1

C. The net change in plants asset during the year

Step-by-step explanation:

Statement of cash flow is define as a financial statement which identifies inflow of cash received by a company and its investment from external sources. Statement of cash shows how a company's cash position is being managed. It also revealed how a compqny manages its operating expenses through cash generation.

Operating activities of cash flow includes;

-Payment of rent

-Interest payment

-Salaries and wages etc.

Activities to be reported in cash flow statements are;

-Cash payments for plant assets during the year

-How acquisition of plant assets were financed during the year