A Reporting Entity Is Required to Prepare a Statement of Cash

question 51

True/False

A reporting entity is required to prepare a statement of cash flows that is in accordance with the requirements of AASB 107 and shall be presented as an integral part of the notes to the accounts.

---

Definitions:

Deposit

Money placed into a financial institution for safekeeping, which can also earn interest depending on the type of account.

Semiannually Compounded Rate

An interest rate that is compounded twice a year, affecting the total amount of interest earned or paid.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Bank

A financial institution licensed to receive deposits, make loans, and offer various financial services, such as currency exchange and wealth management.