Choose the appropriate item from the list provided to fit EACH purpose below - NSC Accounting - Question 3 - 2022 - Paper 1
Question 3
Choose the appropriate item from the list provided to fit EACH purpose below. Write only the letter (A–D) next to the question numbers (3.1.1 to 3.1.3) in the ANSWER... show full transcript
Worked Solution & Example Answer:Choose the appropriate item from the list provided to fit EACH purpose below - NSC Accounting - Question 3 - 2022 - Paper 1
Step 1
3.1.1 To reflect the effects of operating, investing and financing activities
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Answer
The correct item is C: Cash Flow Statement. The Cash Flow Statement provides detailed insights into a company's cash inflows and outflows from operating, investing, and financing activities.
Step 2
3.1.2 To provide a written explanation of the financial performance of a company
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Answer
The appropriate item is D: Directors' Report. The Directors' Report often includes an overview and analysis of the company's financial performance and operations over the reporting period.
Step 3
3.1.3 To reflect the performance of a company in terms of its gross, operating and net profit
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Answer
The suitable item is A: Statement of Comprehensive Income (Income Statement). This statement summarizes the revenues and expenses to show the company's gross, operating, and net profit.
