BE100-Class 16 Week 22 Questions CFS.docx - BE100 Class 16 Questions The Cash Flow Statement Question 1 The following is a list of business

BE100-Class 16 Week 22 Questions CFS.docx - BE100 Class 16...

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BE100 - Class 16 Questions The Cash Flow Statement Question 1The following is a list of business transactions/accounting events. In each case statethe effect (increase, decrease or no effect) on profit and cash giving the reason toexplain such treatment:ProfitCash1Issue of bonus shares to shareholders2Payment of interest on loansdecrease3Purchase of non-current asset on credit4Cash purchase of inventory5Buying inventory on credit6Amortisation of intangible assets7Staff salaries for current accounting period but payable during the next accounting perioddecrease8Receiving payments for credit sales made during the previous accounting periodExpends may be the most effect the profit, such as the payment of interest,Bad debt written off 1
Question 2The following information has been taken from the financial statements of Othello plc for

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