In Accordance with AASB 107 "Cash Flow Statements",dividends Paid May

question 50

True/False

In accordance with AASB 107 "Cash Flow Statements",dividends paid may be classified as an investing or a financing cash flow.

---

Definitions:

Net Income

The profit a company generates after deducting all costs, expenses, and taxes from its total revenue.

Accrued Revenue

Revenue that has been earned, but not yet received in cash or recorded in the accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for accurate financial reporting.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company's assets.