CAF-1 · Chapter 14 · Question 9 of 15
Where should the cash proceeds from issuing new shares be classified in the statement of cash flows?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Financing activities.
Explanation
Financing activities result in changes in the size and composition of the contributed equity and borrowings, such as proceeds from issuing shares.
More IAS 7 Statement of Cash Flows MCQs
- 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:
- 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?