The Local Industry Superannuation Plan,a Defined Contribution Superannuation Plan,had the Following

question 9

Multiple Choice

The Local Industry Superannuation Plan,a defined contribution superannuation plan,had the following assets at the dates shown:
$\begin{array}{l}\begin{array}{crr}30/6/20x9&&&&30/6/20x0\\\text { Asset } & \text { Cost }& \text { Market Value } && \text { Cost }& \text { Market Value }\\\text { A } & \$ 140 & \$ 200 &&\$140&\$300\\\text { B } & 620 & 600 &&620&650\\\text { C } & 950 & 1000 &&950&980\\& 1710 & 1800 &&1710&1930\\\text { D } & 750 & 800&&--&--\\E&--&--&&1400&1410\\&\$ 460& \$ 2 600&&\$3110&\$3340\\\end{array}\\\end{array}$
Asset D was sold during the year ended 30/6/20X0 for $840; asset E was acquired during the
$$\begin{array}{l}\text { For the year ended } 30 / 6 / 20 \times 0 \text { : }\\\begin{array} { l r } \text { Interest revenue (interest, dividends, etc) totalled } & \$ 1500 \\\text { Contributions from members of the fund totalled } & 500 \\\text { Contributions from employers of members of the fund totalled } & 1000 \\\text { Administration expenses paid by the fund totalled } & 500\end{array}\end{array}$$ The statement of cash flows for the year ended 30/6/20X0 should show for 'Cash flows from investing activities' an amount of:

• A) $(560) Net cash used
• B) $560 Net cash provided
• C) $530 Net cash provided
• D) $(530) Net cash used

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Definitions:

Rate of Return

The profit or deficit achieved from an investment during a certain timeframe, represented as a proportion of the investment's initial outlay.

Present Value Factors

Numerical factors used to calculate the present value of future cash flows by accounting for the time value of money.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments by calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Present Value

The today's value of money expected or a sequence of monetary flows in the future, determined by a particular rate of return.