Question

Question 13. Which one of the following statements is correct according to IAS 7 Statement of Cash Flows?

Preparing a statement of cash flows using the direct method gives a different cash flow from operating activities to that using the indirect method

Cash flows from interest and dividends should be disclosed separately

A statement of cash flows may be included as a primary statement in an entitys financial statements, or in the notes to the financial statements

Financing activities include the acquisition and disposal of long-term assets and other investments not

Answer 1

Answer-:

As per IAS 7, STATEMENT OF CASH FLOWS,

• cash flow from interest and dividends should be disclosed seperately.
• A statement of cash flows should be mandatorily present as an integral part in the primary financial statement or notes to financial statements.
• Investing activities include the acquisition and disposal of long-term assets and other investments
• Preparing a statement of cash flows using the direct method doesn't gives a different cash flow from operating activities to that using the indirect method.

So, the correct answer is (b.) Cash flows from interest and dividends should be disclosed separately.

Thankyou......