The Statement of Cash Flows

question 141

Multiple Choice

The statement of cash flows

• A) is prepared instead of an income statement under IFRS.
• B) is used to assess an entity's ability to pay dividends and meet obligations.
• C) is prepared from comparative income statements.
• D) reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.

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Definitions:

Subsidies

Financial support provided by governments to entities, aimed at reducing the cost of services and goods, promoting economic and social policies.

Balance of Trade Deficit

A situation where the value of a country's imports exceeds the value of its exports, resulting in a net outflow of domestic currency to foreign markets.

Balance of Payments Surplus

A situation where the total of a country's exports and incoming funds from other countries exceeds its imports and outgoing funds.

Imports

Goods and services purchased from other countries.