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Disadvantage of the statement of cash flows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Disadvantage of the statement of cash flows

  • This topic has 2 replies, 2 voices, and was last updated 5 months ago by AvatarJohn Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • November 2, 2025 at 8:42 am #723426
    Avatarsomeone44
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    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 flows 

    November 2, 2025 at 2:19 pm #723429
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    A 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.

    November 2, 2025 at 2:19 pm #723430
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    A 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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