4 marksFinancial Statements and Users of Accounting Information

CAPE Management of Business Unit 1 · 2011 · Paper 2 · Question 6(b)(ii)

John, owner of John's Chemicals & Supplies, is reviewing his cash flow statement to guide business decisions.

Outline to John TWO advantages of a cash flow statement to his business.

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Other parts of this question

6(a)(i)State ONE way in which the final accounts of a business serve as a major source of information for Investors.[2 marks]
6(a)(ii)State ONE way in which the final accounts of a business serve as a major source of information for Suppliers.[2 marks]
6(a)(iii)State ONE way in which the final accounts of a business serve as a major source of information for Government.[2 marks]
6(a)(iv)State ONE way in which the final accounts of a business serve as a major source of information for Business Managers.[2 marks]
6(b)(i)Outline to John the meaning of the term 'cash flow statement'.[2 marks]
6(c)Construct the Trading and Profit and Loss Account for John's Chemicals & Supplies for the period ended May 31, 2010.[11 marks]

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