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In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?
Suggested Answer: A, E
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17 comments · newest first
PA
Paris
11 months ago
D seems out of place, not investing at all!
HI
Hillary
11 months ago
Revaluation gain isn't cash flow, right?
RO
Roslyn
12 months ago
Wait, isn't E also considered investing?
FI
Filiberto
12 months ago
I agree, A is spot on!
RO
Rolande
1 year ago
A is definitely an investing activity.
RO
Rosalia
1 year ago
I feel like dividends paid are usually classified under financing activities, so I’m leaning towards A and E for investing.
MI
Minna
1 year ago
I’m a bit confused about revaluation gains; I don’t think they count as cash flows, right?
JA
Jannette
1 year ago
I remember practicing a similar question, and I think interest received might also be considered an investing activity.
JO
Josphine
1 year ago
I think cash paid for additions to property, plant, and equipment is definitely an investing activity, but I'm not sure about the second one.
LA
Lashaunda
1 year ago
The key is to identify the cash flows related to the acquisition and disposal of long-term assets. I'm pretty sure A and E are the correct investing activities here.
DE
Dell
1 year ago
I'm a bit unsure on this one. I know investing activities are different from operating and financing, but I'm not totally clear on the specifics. I'll have to review the IAS 7 standard again.
AL
Alfreda
1 year ago
Okay, I remember that investing activities are things like buying or selling property, equipment, and investments. I think A and E are the right answers.
RO
Ronna
1 year ago
Hmm, let me think this through. I know investing activities are related to the purchase and sale of long-term assets, so I'll focus on those options.
RO
Roxane
1 year ago
I'm pretty confident I know this one. Cash paid for additions to property, plant and equipment and interest received are the two investing activities.
MA
Marilynn
1 year ago
Okay, let me think this through. I know there are some legal restrictions on monitoring, but I'm not sure if they apply broadly or just to certain industries. I'll have to carefully consider each option.
AN
Annice
1 year ago
Hmm, this is a tricky one. I'll need to carefully review the options and think about which advanced process-level properties would be valid.
FL
Florinda
1 year ago
Okay, I think I've got this. A just-in-time system should reduce holding costs and ordering costs, while potentially increasing transportation and production costs. I'll go with the option that reflects that.