Which of the Following Statements Is Correct in Accordance with AASB

question 47

Multiple Choice

Which of the following statements is correct in accordance with AASB 107 Statement of Cash Flows?

• A) Cash repayments of amounts borrowed are classified under financing activities.
• B) Cash proceeds from issuing equity instruments are classified under financing activities.
• C) Cash payments to acquire property, plant and equipment are classified under investing activities.
• D) Cash advances and loans made to other parties are classified under investing activities.

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Definitions:

Rival

in the context of goods, refers to a type of good for which one person's use diminishes others' ability to use it.

Club Goods

Goods that are excludable but not rival in consumption

Private Goods

Products or services that are consumed by one individual and cannot be used simultaneously by others.

Rival in Consumption

A characteristic of a good whereby its consumption by one individual prevents simultaneous consumption by another individual.