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Operating CF from Nobrie

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Operating CF from Nobrie

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by AvatarJohn Moffat.
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  • April 8, 2024 at 4:36 am #703746
    Avatardangkhoa.nhhtd
    Participant
    • Topics: 74
    • Replies: 70
    • ☆☆

    Hello Tutor,

    I have a question related to question 36 Mock Exam 2 in BPP revision kit 2022 – Preparing Operating CF for a company Nobrie. There is one line for interest received. I never encountered such line before in textbook or lecture. But as it was listed, I tried to answer as I remember interest received can be classified as operating or investing CFs. But it was wrong: as per solution, they deleted that line without any explanation. I got confused. I suppose it was a trap? And can you please give me any tips on how I can overcome such trap in exam?

    Thank you tutor!

    April 8, 2024 at 7:02 am #703748
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    I assume that you are referring to the 146 investment income. This is shown as cash flows from investing activities and not as cash flow from operating activities (as is shown in the proforma statement in our free lecture notes).

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