Cashflow statements

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. An entity purchases a building and pays in equity shares of the entity. This transaction should be treated in the statement of cash flows as follows:

  2. An entity (other than a financial institution) receives dividends from its investment in shares. How should it disclose the dividends received in the statement of cash flow under IAS 7?

  3. IAS 7 requires cash flows from operating activities to be reported using:

  4. Both the direct and indirect methods require cash flows to be classified according to operating, investing, and financing activities. The difference in presentation between the two methods:

  5. Which of the following items is not included in the operating section of a statement of cash flows prepared under the direct method?

  6. Which of the following attributes does not relate to the indirect method?

  7. Which of the following advantages does not relate to the direct method?

  8. Which of the following problems with cash flow reporting does not relate to IAS 7?

  9. Which method of reporting cash flows do most companies use?

  10. How should the gain on sale of an office building owned by the entity be presented in a statement of cash flows under the indirect method?