According to AASB 107/IAS 7 Statement of Cash Flows, Which

question 2

Multiple Choice

According to AASB 107/IAS 7 Statement of Cash Flows, which of the following items does not fall within the definition of cash?

• A) Accounts receivable.
• B) Bank notes and coins.
• C) Non-bank bills that are readily convertible to cash.
• D) Deposits on the short-term money market with a term of less than 3 months.

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Margin of Safety

The difference between actual or projected sales and the break-even point; it measures the amount by which sales can drop before reaching the break-even point.

Profit-Volume Chart

A graphical representation that shows the relationship between a firm's profits and its volume of sales.

Cost-Volume-Profit Chart

A graphical representation that shows the relationship between a company's costs, sales volume, and profits.