For Nonfinancial Firms Using IFRS Which of the Following Is

question 27

Multiple Choice

For nonfinancial firms using IFRS which of the following is true?

• A)In most cases,cash flows from income taxes must be reported separately as an operating activity.
• B)Interest and dividends paid may be reported as either operating or investing activities.
• C)Bank overdrafts repayable on demand used as part of normal cash management activities must include those overdrafts as part of financing activities.
• D)Firms using the direct method must provide a schedule reconciling net income to cash flows from operating activities.

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Definitions:

HDC Status

Holder in Due Course Status; a term in negotiable instruments law referring to a person who has acquired a negotiable instrument in good faith for value, and thus has certain protections.

Negotiable Instrument

A written promise or order to pay a specific amount of money, easily transferable from one party to another.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or currency bill, not necessarily its current market value.

Possession

The state of having, owning, or controlling something, either tangibly or legally.