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Problem 1: For nonfinancial firms reporting using IFRS rules, which of the following is correct?
Multiple Choice
Option 1: Interest and dividends paid may be reported as either operating or investing activities.
Option 2: In most cases, cash flows from income taxes must be reported separately as an operating activity.
Option 3: Bank overdrafts repayable on demand used as part of normal cash management activities must include those overdrafts as part of financing activities.
Option 4: Firms using the direct method must provide a schedule reconciling net income to cash flows from operating activities.
Financial Statement Analysis and Preparation
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