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IAS 7 STATEMENT OF CASH FLOWS QUIZ

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IAS 7 Statement of Cash Flows Quiz

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Activities that result in changes in the size and composition of the equity capital and borrowings of
an entity are called:

∠ Operating activities

∠ Investing activities

∠ Financing activities

∠ None of these

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 Incorrect

The principal revenue-producing activities of an entity are called…

∠ Operating activities

∠ Investing activities

∠ Financing activities

∠ None of these

Incorrect

Which of the following is not a heading for cash flows under IAS 7?

∠ Cash flows from operating activities

∠ Cash flows from investing activities

∠ Cash flows from normal activities

∠ Cash flows from financing activities

Incorrect
Cash flows from normal activities is not a heading under IAS 7

Cash payments to and on behalf of employees is an example of cash flows from

∠ Operating activities

∠ Financing activities

∠ Investing activities

∠ None of these

Incorrect

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 Operating activities – Cash flows from operating activities relate to the cash used in the entity’s
normal operating cycle. Payments to employees for wages are required for a business to trade and
are considered part of the operating activities.

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