CAF-1 · Chapter 14 · Question 2 of 15
Which of the following activities is classified as an 'Operating Activity' under IAS 7?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash receipts from the sale of goods and rendering of services.
Explanation
Operating activities are the principal revenue-producing activities of the entity, such as cash receipts from the sale of goods and services.
More IAS 7 Statement of Cash Flows MCQs
- Q4When using the indirect method to calculate cash generated from operations, how is a 'Gain on disposal of equipment' treated?
- Q5Which of the following represents a non-cash transaction that must be EXCLUDED from the statement of cash flows?
- Q6Under the direct method of reporting operating cash flows, how is 'cash received from customers' determined?
- Q7A bank overdraft that is repayable on demand and forms an integral part of an entity's cash management is classified as:
- Q8In the statement of cash flows, how should an increase in inventory during the year be treated when calculating operating cash flows via…