Under IFRS, Some Companies Present Which Section of the Cash

question 7

Multiple Choice

Under IFRS, some companies present which section of the cash flow statement as a single line item?

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

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Definitions:

Allocate Resources

The process of distributing available resources among various competing needs and wants in order to achieve desired outcomes efficiently and effectively.

Efficiently

Attaining the highest level of efficiency by minimizing unnecessary effort or cost.

Externality

A financial consequence related to a product or service that results in advantages or expenses for individuals not involved in making decisions about the amount of production or consumption.

Economic Efficiency

The optimal allocation of resources where goods and services are produced at their lowest possible cost and where those goods and services align with consumers' preferences.