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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
Question 2 of 4
Cash payments to and on behalf of employees is an example of cash flows from
Operating activities
Financing activities
Investing activities
None of these
Correct
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.
Question 3 of 4
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
Question 4 of 4
The principal revenue-producing activities of an entity are called…
Operating activities
Investing activities
Financing activities
None of these
A cash flow statement provides information that enables users to evaluate the changes
in:
Solvency
Its liquidity
Financing activities
Operating activities
Activities that result in changes in the size (and composition) of the equity
capital, and borrowings are:
Component of cash and cash equivalent
Financing activities
Operating activities
Investing activities
1 month
12 month
3 month
Extracts from the statements of financial position of Naveed Ltd
are as given in table:<br><br>On 01 January 2012 a bonus issue
of one new share for every 10 held was made, financed from the
share premium account. This was followed by a further issue for
cash. What amount will appear under ‘cash flows from financing
activities’ in the statement of cash flows of Naveed Ltd for the
year ended 31 December 2012 in respect of shares issues?
$ 550 million
$ 500 million
$ 450 million
$ 250 million