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CMA Intermediate · Corporate Accounting and Auditing · Cash Flow Statement

Under Ind AS 7, the statement of cash flows must report cash flows during the period classified into which set of activities?

Ind AS 7 classifies cash flows into operating, investing and financing activities. The entity presents them in the manner most appropriate to its business, because this classification helps users assess how each activity affects financial position and the amount of cash and cash equivalents.

  1. AOperating, investing and financing activitiesCorrect
  2. BRevenue, capital and extraordinary activities
  3. CProduction, selling and administrative activities
  4. DCurrent, non-current and contingent activities

Explanation

Ind AS 7 requires an entity to present cash flows from operating, investing and financing activities in a manner most appropriate to its business. The other groupings are not classifications prescribed by the standard.

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