How Does IAS 7 Require Cash Flows During a Period

question 4

Multiple Choice

How does IAS 7 require cash flows during a period to be reported?

• A)The cash flows generated by operating activities,investing activities and financing activities are listed,together with the net change in cash and cash equivalents.
• B)Only the net change in cash and cash equivalents is required
• C)The cash flows generated by operating activities,investing activities and financing activities are listed in their constituent parts,together with the net change of cash and cash equivalents
• D)Total cash flows must be generated on a monthly basis to show trends over the financial year

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Definitions:

Total Cost of Ownership

The comprehensive assessment of the direct and indirect costs and benefits associated with the acquisition and use of an asset over its entire life cycle.

Domestic Supplier

A supplier that operates within the same country as the purchasing entity, often preferred for logistical, economic, or regulatory reasons.

International Supplier

A vendor located in a different country from the one where the goods or services are consumed, providing global sourcing options.

New Market

An area or sector not previously entered or served by a company or industry, presenting opportunities for growth and expansion.