1. Which of the following is true regarding the statement of cash flows under IFRS?

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MULTIPLE CHOICE QUESTION:

1. Which of the following is true regarding the statement of cash flows under IFRS?

a. The statement of cash flows has two major sections—operating and non-operating.

b. The statement of cash flows has two major sections—financing and investing.

c. The statement of cash flows has three major sections—operating, investing, and financing.

d. The statement of cash flows has three major sections—operating, non-operating, and financing.

2. In the case of a bank overdraft:

a. GAAP typically includes the amount in cash and cash equivalents.

b. IFRS typically includes the amount in cash equivalents but not in cash.

c. GAAP typically treats the overdraft as a liability and reports the amount in the financing section of the statement of cash flows.

d. IFRS typically treats the overdraft as a liability and reports the amount in the investing section of the statement of cash flows.

3. Under IFRS, significant non-cash transactions:

a. Are classified as operating if they are related to income items.

b. Are excluded from the statement of cash flows and disclosed in narrative form or summarized in a separate schedule.

c. Are classified as an investing or financing activity.

d. Are classified as an operating activity unless they can be specifically identified with financing or investing activities.


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