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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