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:

Social Surroundings

The societal and cultural factors that influence individuals' behavior, preferences, and interactions within a community or society.

Physical Surroundings

The environmental factors or conditions in a specific location that can affect individuals' behaviors, experiences, and interactions.

Market Leader

A company that has the largest market share in a given industry, dominating the competition in terms of sales, innovation, or brand recognition.

Low-involvement Product

A product that requires minimal thought and effort from the consumer prior to and during purchase.