Which of the following assertions about cash flow statements is/are correct?
(1) A cash flow statement prepared using the direct method produces a different figure for operating cash flow
from that produced if the indirect method is used.
(2) Rights issues of shares do not feature in cash flow statements.
(3) A surplus on revaluation of a non-current asset will not appear as an item in a cash flow statement.
(4) A profit on the sale of a non-current asset will appear as an item under Cash Flows from Investing Activities
in a cash flow statement.
A 1 and 4
B 2 and 3
C 3 only
D 2 and 4.

C