CIMA BA3 · Chapter 12 · Question 5 of 10
Under IAS 7 Statement of Cash Flows, how is the repayment of a bank loan classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Financing activities
Explanation
Financing activities change the size and composition of the entity's equity and borrowings. Repaying a loan reduces borrowings, so it is a financing cash outflow.
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