Which properly represents the preparation of the statement

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Problem 1: Which of the following properly represents the preparation of the statement of cash flows prepared using IFRS rules?

Multiple Choice

Option 1:
The presentation of the statement of cash flows is the same for all companies preparing statements under IFRS.

Option 2:
The flexibility provided under IFRS guidance for the preparation of the statement of cash flows increases the comparability of results between companies.

Option 3:
Firms using the direct method are not required to provide a reconciliation of net income to cash flows from operations.

Option 4:
The presentation of the statement of cash flows differs to those following U.S. GAAP as a result of prescribed classification differences under IFRS.

Reference no: EM132953705

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