Under IFRS the Cash Flow Statement Can Be Prepared Using

question 30

Multiple Choice

Under IFRS the cash flow statement can be prepared using

• A) the direct method only.
• B) the indirect method only.
• C) either the direct or indirect method.
• D) the T-account method only.

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Definitions:

Direct Method

An accounting approach for the cash flow statement that lists major classes of gross cash receipts and payments.

Deferred Revenue

Deferred revenue is income a company has received for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until the obligation is fulfilled.

Accounts Receivables

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Insurance

A contractual arrangement where one party, the insurer, compensates another party, the insured, for losses from specific events or dangers.