Which Statement Concerning the Concept of Cash Adopted by IAS

question 26

Multiple Choice

Which statement concerning the concept of cash adopted by IAS 7/AASB 107 is incorrect?

• A) Transfers between items included in the definition of cash and cash equivalents are not reported in the statement of cash flows.
• B) As a general rule liquid investments with a term of three month or less, with insignificant risk of changes in value, fall within the definition of cash or cash equivalents.
• C) Accounts receivable are generally included in the definition of cash and cash equivalents.
• D) Depending on the conditions that apply, a bank overdraft may be treated as a financing activity.

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Definitions:

Quality of Life

A measure of the general well-being of individuals and societies, encompassing not only wealth and employment but also the built environment, physical and mental health, education, recreation and leisure time, and social belonging.

Sanctity of Life

The belief or doctrine that life is sacred and inviolable, often grounded in religious or moral principles, highlighting the importance of preserving life.

Financial Security

The state of having stable income or other resources to support a standard of living now and in the foreseeable future.

Dependents

Individuals who rely on others, typically family members, for financial support and care due to age, disability, or other reasons.