According to AASB's Interpretation 1031, Which of the Following Statements

question 45

Multiple Choice

According to AASB's Interpretation 1031, which of the following statements relating to the treatment of GST in the statement of cash flows are correct?
I.All GST outlays and GST collections are regarded as effecting operating activities.
II.Cash flows from operating activities are reported at gross amounts inclusive of GST.
III.Cash flows from investing activities are shown net of GST, with GST on investing activities included as part of operating activities.

• A) I and III only
• B) I and II only
• C) II and III only
• D) I, II and III

---

Definitions:

Theoretical Reasoning

The process of systematically working through concepts and principles in a logical manner to understand or explain phenomena.

Concrete Reasoning

Thinking based on the physical, tangible world and immediate experiences rather than abstraction or hypothetical scenarios.

Formal Reasoning

The process of logical thinking and problem-solving that follows established rules and procedures, typically associated with mature cognitive development.

Analytic Thought

A cognitive process that involves breaking down complex information or problems into smaller parts or basic principles for better understanding and problem-solving.