Choose the most correct answers from the following options

8. If expenses are classified into the groups, cost of sales, selling expenses, administrative expenses and finance expenses, under IAS 1/AASB 101 Presentation of Financial Statements they are classified by:

a. Nature

b. Function

c. Liquidity

d. Tangibility

9. The statement concerning the concept of cash adopted by IAS 7/AASB 107 Statement of Cash Flows that is incorrect is:

a. Transfers between items included in the definition of cash and cash equivalents are not reported in the statement of cash flows

b. As a general rule liquid investments with a term of three month or less, with insignificant risk of changes in value, fall within the definition of cash or cash equivalents

c. Accounts receivable are generally included in the definition of cash and cash equivalents

d. Depending on the conditions that apply, a bank overdraft may be treated as a financing activity

10. The statement concerning the treatment of the purchase and sale of non-current assets in a statement of cash flows that is incorrect is

: a. The carrying value of a non-current asset that has been sold is treated as an investing outflow

b. The proceeds of sale from a non-current asset are treated as an investing inflow

c. The cash purchase of a non-current asset is treated as an investing outflow

d. Inflows and outflows for the purchase and sale of non-current assets must not be netted off against each other