AC 302 WEEK 9 Multiple Choice Questions
IFRS Multiple Choice Question 06
Your answer is correct.
Which of the following is false with regard to IFRS and the statement of cash flows?
The IASB is strongly in favor of requiring use of the direct method for operating activities.
In certain circumstances under IFRS, bank overdrafts are considered part of cash and cash equivalents.
IFRS requires that noncash investing and financing activities be excluded from the statement of cash flows.
All of the above statements are false with regard to IFRS and the statement of cash flows.
IFRS Multiple Choice Question 07
Your answer is correct.
Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?
Interest paid Dividends paid
Operating Investing
Investing Financing
Financing Investing
Operating Financing
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IFRS Multiple Choice Question 08
Your answer is correct.
Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?
Interest received Dividends received
Operating Investing
Financing Investing
Investing Financing
Operating Financing
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IFRS Multiple Choice Question 09
Your answer is correct.
Wave, Inc. follows IFRS for its external financial reporting. The statement of cash flows reports changes in cash and cash equivalents, which of the following is not considered cash or a cash equivalent under IFRS?
Bank overdrafts.
Commercial paper.
Accounts receivable.
Coin.
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IFRS Multiple Choice Question 10
Your answer is correct.
Surf Company follows IFRS for its external financial reporting. The following amounts were available at December 31, 2013:
Interest paid $22,000
Dividends paid 16,000
Taxes paid 37,000
Under IFRS, what is the maximum amount that could be reported for cash used by operating activities for Surf Company for the year ended December 31, 2013?
$38,000
$53,000
$75,000
$59,000
USA 
India