CAF-1 · Chapter 14 · Question 7 of 15
A bank overdraft that is repayable on demand and forms an integral part of an entity's cash management is classified as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A component of cash and cash equivalents.
Explanation
Bank overdrafts repayable on demand that form an integral part of cash management are included as a component of cash and cash equivalents.
More IAS 7 Statement of Cash Flows MCQs
- Q9Where should the cash proceeds from issuing new shares be classified in the statement of cash flows?
- Q10According to IAS 7, what is the classification for cash payments to acquire property, plant, and equipment?
- Q11How are interest paid and interest received typically classified in a statement of cash flows?
- 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: