Which is a correct statement?
A)The direct method of presentation for the cash flow statement must be used under ASPE.
B)The direct method of presentation for the cash flow statement must be used under IFRS.
C)The statement of cash flows explains the change between opening and closing cash.
D)The balance of the cash flow statement does not have to equal the balance sheet amount.

Question

Quizplus · Accepted Answer

The statement of cash flows explains the change between opening and closing cash. Option A and B are incorrect as both ASPE and IFRS allow for the use of either the direct or indirect method. Option D is incorrect as the balance of the cash flow statement must equal the balance sheet amount.

Which Is a Correct Statement