Business Combination and Group Statement of Cash Flows
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Questions and Answers

What is the objective of IAS 7?

  • To interpret the statements of cash flows for entities
  • To provide guidelines for the preparation of financial statements for business combinations
  • To require the presentation of information about historical changes in cash and cash equivalents of an entity through a statement of cash flows (correct)
  • To classify cash flows during the period according to operating, investing, and financing activities
  • What does IAS 1 state about the statement of cash flow?

  • It provides information about the cash flows of the entity during the reporting period and the changes in cash and cash equivalents during the period (correct)
  • It classifies cash flows during the period according to operating, investing, and financing activities
  • It requires entities to interpret the statements of cash flows for better understanding
  • It outlines the purpose and format for preparing group statements of cash flows
  • What is the purpose of a statement of cash flow?

  • To provide information about the cash flows of the entity during the reporting period and changes in cash and cash equivalents during the period (correct)
  • To demonstrate an understanding of business combinations according to IFRS-3
  • To interpret financial statements for entities
  • To classify financial activities into operating, investing, and financing activities
  • What does IAS 7 classify during a reporting period?

    <p>Cash flows into operating, investing, and financing activities</p> Signup and view all the answers

    According to IAS 7, what does a statement of cash flow provide information about?

    <p>The cash flows of the entity during the reporting period and changes in cash and cash equivalents during the period</p> Signup and view all the answers

    What does IAS 7 classify during the reporting period?

    <p>Cash flows according to operating, investing, and financing activities</p> Signup and view all the answers

    What does a statement of cash flow provide information about?

    <p>The cash flows of the entity during the reporting period</p> Signup and view all the answers

    What is the purpose of a statement of cash flow according to IAS 1?

    <p>To provide information about the changes in cash and cash equivalents during the period</p> Signup and view all the answers

    What is the objective of IAS 7?

    <p>To require the presentation of information about historical changes in cash and cash equivalents by means of a statement of cash flows</p> Signup and view all the answers

    According to IAS 7, how are cash flows classified?

    <p>Operating, investing, and financing activities</p> Signup and view all the answers

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