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John Moffat.
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jermy01
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343 Which of the following is not an advantage of the statement of cash flows?
A It highlights the effect of non?cash transactions
B It helps an assessment of the liquidity off a business
C The numbers within it cannot be manipulated through the adoption of beneficial
accounting policies
D It helps users to estimate future cash flowsAnswer is A but why? Can you explain, sir?
John Moffat
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The whole point of the statement of cash flows is that is summarises cash transactions. It does not show transactions that were not in cash.
jermy01
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