Which Statement Concerning the Concept of Cash Adopted by IAS

question 26

Multiple Choice

Which statement concerning the concept of cash adopted by IAS 7/AASB 107 is incorrect?

• A) Transfers between items included in the definition of cash and cash equivalents are not reported in the statement of cash flows.
• B) As a general rule liquid investments with a term of three month or less, with insignificant risk of changes in value, fall within the definition of cash or cash equivalents.
• C) Accounts receivable are generally included in the definition of cash and cash equivalents.
• D) Depending on the conditions that apply, a bank overdraft may be treated as a financing activity.

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Definitions:

Corporate Career Backgrounds

The professional experiences and pathways within corporations that individuals have taken.

Entrepreneurial Venture

A startup or a new business established by an entrepreneur with the aim of seeking innovation, growth, and profit.

Minority-owned SMEs

Small and medium-sized enterprises that are owned and controlled by individuals from minority ethnic or racial groups.

Service-based Industry

An industry that focuses on providing services rather than producing physical goods, examples include healthcare, education, and information technology services.