Which of the following is true regarding the statement of cash flows and IFRS? Cash and cash
Question:
Which of the following is true regarding the statement of cash flows and IFRS?
Cash and cash equivalents are defined differently under IFRS than under GAAP. | ||
Under IFRS most companies choose to use the direct method of reporting cash flows from operating activities. | ||
Companies preparing a complete set of financial statements under IFRS may exclude the statement of cash flows if the cash flow activity is reported in the notes to the financial statements. | ||
Under IFRS noncash investing and financing activities are excluded from the statement of cash flows and instead are presented in the notes to the financial statements. |
Acquiring land and a building by issuing common stock would be reported as:
a noncash investing and financing activity. | ||
a financing activity. | ||
both an investing activity and a financing activity. | ||
an investing activity. |
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger