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STATEMENT OF CASH FLOWS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › STATEMENT OF CASH FLOWS

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • September 14, 2022 at 7:45 pm #666418
    Eunice03
    Participant
    • Topics: 88
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    30 September 20X3 30 September 20X2

    Investments 50 0
    The current asset investment was a 30-day government bond

    Good day sir, This entry was excluded from the investing activities in the cash flow statement .I’ll appreciate if you can explain why it wasn’t included as a purchase of government bond which is a cash outflow

    September 22, 2022 at 8:57 pm #667033
    P2-D2
    Keymaster
    • Topics: 4
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    Hi,

    Government bonds are highly liquid assets and meet the definition of a cash equivalent. They would therefore be part of cash and cash equivalents at the bottom of the statement of cash flows.

    Thanks

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