Which Statement Is Correct According to IAS 7

question 5

Multiple Choice

Which statement is correct according to IAS 7?

• A)An enterprise must classify the receipt of interest and dividends received as an operating activity.
• B)An enterprise must classify the receipt of interest and dividends received as an investing activity.
• C)An enterprise may choose to report the payment of interest and dividends as either an operating or a financing activity.
• D)An enterprise must choose to report the payment of interest and dividends as an operating activity.

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Definitions:

Market Manipulation

Actions designed to deceive investors by controlling or artificially affecting the price of securities.

General Partner

A member of a partnership who has unlimited liability and is active in the daily management of the business.

Insider

An individual who has access to confidential or non-public information about a company, primarily due to their relationship with the company.

Limited Offers

Promotions or sales propositions available for a restricted time frame or quantity.