Which of the Following Is Not Classified as a Financing

question 48

Multiple Choice

Which of the following is not classified as a financing activity by IAS 7/AASB 107?

• A) Repayment of borrowings.
• B) Dividends paid to shareholders.
• C) The issue of shares by a company to raise capital.
• D) The sale of shares that have been held as an investment.

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Definitions:

Accrued Sales Revenues

Revenues earned during a period but not yet received in cash or recorded at the statement date.

Unearned Sales Revenues

Money received by a company for products or services yet to be delivered or performed, considered a liability until earned.

Cash Collected

Revenue that has been received by a company from its various business activities, such as sales or services.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.