Question 8.A.3: State whether each of the following statements is true or fa...

State whether each of the following statements is true or false.
(a) Operating activities reflect total cash inflows.              True/False
(b) Depreciation decreases the cash position.                     True/False
(c) Tax paid decreases the tax position.                                 True/False
(d) A proposed dividend increases the cash position.        True/False
(e) A decrease in debtors increases the cash position.       True/False
(f) An increase in creditors decreases the cash position.   True/False
We can now move on to examine the second note required by FRS1. This note reconciles the net cash flow to movement in net debt.

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(a) false; (b) false; (c) true; (d) false; (e) true; (f) false.

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