UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
Paper 3 Multiple Choice
Additional Materials: Multiple Choice Answer Sheet
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© UCLES 2006
In cash flow analysis, which item is a cash inflow?
A a decrease in stock
B a bonus issue of shares
C a decrease in trade creditors
D an increase in debtors
A company issued 10 000 $10 ordinary shares at a price of $20 each.
A month after the issue, the company used $156 000 of the proceeds to repay an 8 % Loan Stock
including six months’ accrued interest due. The company prepared a cash flow statement just
after repayment of the Loan Stock.
What amount of net cash inflow will appear under the heading ‘Financing’ in the cash flow
A $38 000
B $44 000
C $50 000
D $56 000
3 Why would convertible loan stock be issued by a company?
to obtain low-cost finance when equity m