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Dear Sir,
how come the correct answer is A, I know that B is the correct statement, C and D are both incorrect answers. What about A?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 flowsA does not highlight non-cash transactions (because it doesn’t list non-cash transactions) – so it is not an advantage 🙂
B is not correct because it is an advantage of the statement.
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