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?

Cash flows into operating, investing, and financing activities (D) Signup and view all the answers

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

The cash flows of the entity during the reporting period and changes in cash and cash equivalents during the period (A) Signup and view all the answers

What does IAS 7 classify during the reporting period?

Cash flows according to operating, investing, and financing activities (C) Signup and view all the answers

What does a statement of cash flow provide information about?

The cash flows of the entity during the reporting period (D) Signup and view all the answers

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

To provide information about the changes in cash and cash equivalents during the period (A) Signup and view all the answers

What is the objective of IAS 7?

To require the presentation of information about historical changes in cash and cash equivalents by means of a statement of cash flows (C) Signup and view all the answers