Which of the Following Statements Concerning IFRS and the Statement

question 97

Multiple Choice

Which of the following statements concerning IFRS and the statement of cash flows is correct?

• A)When large foreign companies that follow IFRS prepare the statement of cash flows they overwhelmingly use the direct method to prepare the cash flow from operating activities section.
• B)IFRS permits companies to classify interest paid,interest received,and dividends received as part of either investing or operating activities.
• C)IFRS rules permit firms that use bank overdrafts repayable on demand as part of their normal cash management activities to include those amounts as a component of cash and cash equivalents.
• D)IFRS rules require firms that use the direct method to also provide a reconciliation of net income to cash flows from operating activities (essentially the indirect method).

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Definitions:

Raw Materials

Any materials that go into the final product.

Production Schedule

A timeline that outlines the specific tasks, operations, and timelines for producing goods within a manufacturing process.

Budgeted Selling Price

An estimated amount for which a product is expected to be sold, determined during the budgeting process.

Budgeted Unit Sales

The number of units a company anticipates selling in a future period as outlined in its budget.