CAF-1 · Chapter 14 · Question 10 of 15
According to IAS 7, what is the classification for cash payments to acquire property, plant, and equipment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Investing activities.
Explanation
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
More IAS 7 Statement of Cash Flows MCQs
- Q12Which of the following is a primary advantage of providing a statement of cash flows?
- Q13A company pays a dividend to its shareholders. Under IAS 7, this cash outflow is typically classified as:
- Q14Under the indirect method, how is depreciation expense treated when calculating cash generated from operations?
- Q15When preparing a cash flow statement, an entity discovers it has a 45-day treasury bill. How should this be classified?
- Q1Under IAS 7, how are 'cash equivalents' defined?