The Following Was Provided by the Records of RST for the Current

question 68

Multiple Choice

The following was provided by the records of RST for the current reporting year: The cash flow from operating activities was:

• A)$40,000 outflow.
• B)$7,000 inflow.
• C)$5,000 inflow.
• D)$4,000 inflow.

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Definitions:

Equity Accounted Balance

A method of accounting whereby an investor recognizes its share of the profits and losses of its investee within its own financial statements.

Profit/(Loss)

The financial result of an entity's operations and activities, indicating income or deficit over a specific period.

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the earnings of the investee.

Non-current Assets

Assets that are intended for use over a long-term period, usually more than one year, such as property, plant, and equipment.