1.A policy choice can be made under IFRS to report dividends or interest paid as a(n):

investing or financing activity.

operating or financing activity.

non-cash transaction.

financing or investing activity.

2.In order to prepare the statement of cash flow or cash flow statement, which of the following source of information is required?

previous year's income statement

comparative income statements

other comprehensive income

comparative statements of financial position

3.The primary purpose of the statement of cash flows is to provide information about the:

reasons for the difference between net income and net cash flow from operating activities.

entity's cash receipts and cash payments during a period.

entity's ability to generate future cash flows.

entity's ability to pay dividends and meet obligations.

4.Duncan Corp. purchased a building, paying part of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In a statement of cash flows, what amount is included in financing activities for the above transaction?

the cash payment

zero (but disclosed in the notes)

the amount mortgaged

the full purchase price

5.Retiring debt by issuing equity securities would be:

reported only as a note to the statement of cash flows.

included in investing activities.

included in financing activities.

included in both investing and financing activities.