Which of the Following Is True About the IASB Standards

question 10

Multiple Choice

Which of the following is true about the IASB standards on Cash Flow Statements?

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

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Definitions:

Defined Contribution Plans

Post-employment plans for which an employer pays fixed contributions into a separate entity (e.g., superannuation fund) on behalf of the employee.

Superannuation Fund

A superannuation fund is a pension program created by a company for the benefit of its employees, primarily practiced in Australia.

Legal Obligation

A duty that is legally enforceable because it arises out of a contract or legal requirement.

Defined Benefit Obligation

A company's liability to pay its employees' retirement benefits, calculated based on factors like salary histories and years of service.