Which of the Following Is True About the IASB Standards

question 3

Multiple Choice

Which of the following is true about the IASB standards on statement of cash flows?

• A)Cash flow statements are not required under the IASB standards.
• B)Operating cash flows must be determined using the "direct method only."
• C)Operating cash flows may be combined with financing cash flows.
• D)IAS 7 requires essentially the same information in the statement of cash flows as U.S.GAAP.

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Definitions:

Manufacturing Costs

Expenses related to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.

ABC System

Activity-Based Costing (ABC) System is a method of allocating costs to products and services based on the activities that go into producing them.

Departmental Managers

Individuals responsible for overseeing specific departments within a company, focusing on performance, objectives, and management of departmental employees.