A transaction that would not appear in a cash flow statement is:
A) the upward revaluation of an asset.
B) the creation of an allowance for doubtful debts.
C) a bonus issue of shares.
D) all of the above.

Question

Quizplus · Accepted Answer

The cash flow statement only includes transactions that involve actual cash flows. A) the upward revaluation of an asset, B) the creation of an allowance for doubtful debts, and C) a bonus issue of shares do not involve cash movements, hence they do not appear in a cash flow statement.

A Transaction That Would Not Appear in a Cash Flow