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Which of the following is disclosed separately in a statement of cash flows using the indirect method?
A. Cash received from customers
B. Cash paid to employees and other suppliers
C. Increase in retained earnings for the period
D. Net income

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Answer:

C. Increase in retained earnings for the period

Explanation:

The Standard that deals with the Presentation and discloser of Cash flow statement (IAS7) requires that the items that do not involve the use of cash must be disclosed separately. That means item C , increases in retained earnings for the period is disclosed separately since it does not involve the use of cash.

A statement of cash flows is refer to the financial statement that shows how changes are made in the balance sheet accounts and how income affect cash and cash equivalents.

A statement of cash flows

Correct option is C.

  • In indirect method no general cash receipts ad cash payments in operating cash flow is shown, it relates to displaying adjustments in net income, and changes in working capital etc.

  • In indirect method the accountant adjust various factors like non cash transactions from the net income of the year.

Therefore, Correct option is C.

Learn more about cash flows, refer to the link:

https://brainly.com/question/17143250

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