Which of the Following Activities Is Excluded from the Statement

question 123

Multiple Choice

Which of the following activities is excluded from the statement of cash flows under IFRS?

• A)Financing activities
• B)Investing activities
• C)Noncash investing and financing activities
• D)Operating activities

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Definitions:

Liquidity Problems

Financial difficulties arising from an entity's inability to quickly convert assets into cash without significant loss, impacting its capacity to meet short-term obligations.

Acid-test Ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Quick Assets

Assets that can be quickly converted into cash without a significant loss in value, including cash, marketable securities, and accounts receivable.

Current Liabilities

Obligations or debts that a company must pay within one year or within its operating cycle if longer.