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:

Digital Worlds

Virtual environments and online platforms where users can interact, create, and engage with digital content and communities.

Augmented Reality

An interactive experience of a real-world environment where objects in the real world are enhanced by computer-generated perceptual information.

Snapchat

A social media app known for its ephemeral messaging and multimedia features, allowing users to send disappearing photos and videos.

Sampling Program

A promotional strategy where consumers are given free samples of a product to try, aiming to increase awareness and encourage purchases.