which of these is a transaction that would be reported in the statement
of cash flows itself
rather than in the notes?
a. a bonus share issue
b. amortisation of goodwill
c.interim dividend paid
d. the acquisition of another entity by means of a hare issue
The statement of cash flows mentions only the cash transactions
which involve cash inflow and outflow:
a. bonus share are issued free of cost. There is no inflow or
outflow of cash so this will not be mentioned in the
statement
b. amortisation of goodwill like any ther depreciation is also a
non cash transaction and therefore wont be mentioned in the
cashflow statement
c.interim dividend paid involves cash outflow, like any
other dividend, it will be mentioned in the cash flow
statement
d. the acquisition of another entity by means of a share issue will
not result in the a cash outflow and may not result in inflow
either and the cash is reduced from the assets to come to the price
of the target company. So it will not be mentioned on the cash flow
statement.
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