• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Statement of cash flows

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

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 19, 2022 at 1:37 am #651512
    Hinthu
    Participant
    • Topics: 25
    • Replies: 26
    • ☆☆

    Example 2 ( lecture on statement of cash flows part C-Financial accounting)
    Profit or loss for the year ended 31 December.

    Revenue $1,200,000
    Cost of sales $ (840000)
    Gross profit $360,000
    Distribution and administrative expenses $(120,000)
    Net profit before tax. $240,000

    Extracts from SOFP
    2007 2006
    Current assets
    Inventory 160,000. 140,000
    Trade recibables 259,000. 235,000
    Current liabilities
    Trade payables. 168,000. 138,000

    Following information are given,
    1-Expenses include depreciation of 36,000, is irrecoverable debts written off of 14,000 and employment costs of 42000

    2-during the year disposed of non-current asset for 24,000 which had a book value of 18,000, the profit on which had been netted off expensed

    How the cash generated from operations would be presented on statement of cash flows using the direct method?
    My doubt:
    Why is irrecoverable debt written-off of 14,000 subtracted when calculating other expenses?

    March 19, 2022 at 11:34 am #651520
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Because the debt written off means that cash is not received. So it affected the cash received from customers (and we do not want to remove it twice by including it in other expenses as well).

    (There is no need to copy out examples in our lecture notes, because I obviously have copies of our notes 🙂 🙂 )

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Josfel on Relevant cash flows for DCF Taxation (example 4) – ACCA Financial Management (FM)
  • askar.turganbayev@gmail.com on AA Chapter 2 Questions
  • RashidMh on MA Chapter 1 Questions Accounting for Management

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in