Page 310 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 18

Cash flows from investing activities

This section of the statement of cash flows deals with payments for the purchase of
non-current assets and any cash proceeds from their disposal. In the computer-
based assessment use ledger accounts to fill in the information you know and then
balance off the missing cash flow.

If there is evidence of a revaluation of property, plant and equipment
during the year, remember to include the gain on the debit side of the
asset account.

304