Q1.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 77 a) Operating cash intlow b) Either as operating cash inflow or as investing cash intlow c) Financing cash flow d) Either as operating cash inflow or as financing cash inflow e) None of the above Q2. Which of the following problems with cash flow reporting does not relate to IAS 7? a) The abuse of the classifications of specific cash flows b) No guidance on the format of the statement of cash flows c) There is not enough guidance on the classification of cash flows d) Entities can choose the method used e) None of the above Q3. IAS 7 requires cash flows from operating activities to be reported using: a) The indirect method only b) Funds flow method c) The direct method or indirect method d) The direct method only e) All of the above Q4. Which of the following advantages does not relate to the direct method? a) Better insights into the current cash position b) Greater transparency c) Simple to produce d) Allows for realistic projections of future operating cash flow e) None of the above