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Multiple Choice Questions ( 1 0 Marks ) 1 . Which of the following activities is classified as an operating activity under IAS 7 ?
Multiple Choice Questions Marks
Which of the following activities is classified as an operating activity under IAS
a Purchase of machinery
b Issuance of shares
c Sale of goods
d Repayment of loans
Which method of preparing the statement of cash flows starts with net income and adjusts for changes in balance sheet accounts?
a Direct method
b Indirect method
c Cumulative method
d Comprehensive method
Which of the following cash flows is NOT included in investing activities?
a Purchase of property, plant, and equipment
b Proceeds from the sale of investments
c Interest received
d Dividend payments
Which of the following statements about cash equivalents is true?
a They are readily convertible to a known amount of cash
b They have a maturity of more than three months
c They include equity investments
d They are subject to significant risk of changes in value
Which of the following is an example of a financing activity under IAS
a Payment of interest
b Issuance of debt
c Receipt of dividends
d Purchase of inventory
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