Which of the Following Statements Is Correct in Accordance with AASB

question 29

Multiple Choice

Which of the following statements is correct in accordance with AASB 107 "Cash Flow Statements"??

• 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.
• E) Conversion from debt to equity is classified under operating activities.

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Definitions:

Behavioral Economics

A field of economic research that integrates psychological insights into human behavior to explain economic decision-making.

Negative Emotional Associations

Refers to the unfavorable feelings or emotions that are linked to a particular concept, object, or situation due to past experiences or perceptions.

Self-Serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, leading individuals to make illogical decisions.