IAS 7 Requires That a Note to the Accounts Shall

question 2

Multiple Choice

IAS 7 requires that a note to the accounts shall disclose a reconciliation of cash flows from operating activities to operating profit or loss after income tax as reported in the statement of comprehensive income.The correct adjustments to the operating profit/loss after tax include:

• A)add; depreciation expense, gain on sale of plant and equipment, increase in interest payable, increase in inventories.
• B)subtract; increase in future income tax benefit, increase in accounts receivable, loss on sale of plant and equipment.
• C)add; increase in accounts payable, increase in income taxes payable, increase in deferred taxes payable.
• D)subtract; amortisation expense, increase in future income benefit, increase in interest payable.

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