Which of the following is true?
A) The IASB requires eight cash flow categories.
B) The Statement of Cash Flows is classified according to three main categories.
C) The IASB does not specifically require a Statement of Cash Flows.
D) The provisions of IAS 7 are less flexible than the U.S.rules.

Question

Quizplus · Accepted Answer

The Statement of Cash Flows is classified according to three main categories: operating activities, investing activities, and financing activities. Choice A is incorrect because the IASB requires two cash flow categories (operating activities and investing and financing activities). Choice C is incorrect because the IASB specifically requires a Statement of Cash Flows in its International Financial Reporting Standards. Choice D is incorrect because IAS 7 allows for flexibility in how cash flows are presented, including allowing for the use of the direct or indirect method for presenting cash flows from operating activities.

Which of the Following Is True