IAS 7

question 27

Multiple Choice

IAS 7

• A) encourages the direct method
• B) requires the direct method
• C) encourages the indirect method
• D) requires the indirect method

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Definitions:

Redistribution Income

The transfer of income and wealth from some individuals to others through a social mechanism such as taxation, charity, welfare, public services, or land reform.

Rent-seeking Activity

Actions by individuals or firms to increase their own wealth without creating new wealth or value for society.

Taxing

The act of imposing charges on individuals or entities by the government in order to finance public spending and services.

Benefits

The advantages or positive outcomes that accrue from actions, activities, or projects, often used in evaluating decisions.