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1 mark

Which transaction among the following is NOT disclosed in the cash flow statement due to the non-cash nature of the transaction.

  1. A
    Disposal of Equipment and non-current investments
  2. B
    Assets acquired by issue of shares
  3. C
    Redemption of preference shares
  4. D
    Sale of property

Solution & Step-by-step Explanation

Cash Flow Statements record only actual transaction movements involving cash and cash equivalents.When a company acquires an asset and directly issues its shares to the vendor as consideration, no cash flows in or out of the entity. Therefore, assets acquired by issue of shares is classified as a purely non-cash transaction and excluded from the main body of the Cash Flow Statement.

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Which transaction among the following is NOT disclosed in the cash flow statement due to the non-cash nature of the transaction.
A
Disposal of Equipment and non-current investments
B
Assets acquired by issue of shares
C
Redemption of preference shares
D
Sale of property

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