Which statement is correct?
A)Cash flows are grouped by operating,investing and financing activities.
B)Cash inflows and outflows are netted against each other.
C)Net interest received or paid can be offset in the cash flow statement.
D)Income tax paid does not need to be presented separately.

Question

Quizplus · Accepted Answer

Cash flows are grouped by operating, investing and financing activities in the cash flow statement as per the International Accounting Standard (IAS) 7. B is incorrect as cash inflows and outflows are not netted against each other in the cash flow statement. C is incorrect as net interest received or paid cannot be offset in the cash flow statement, it needs to be presented separately. D is also incorrect as income tax paid needs to be presented separately in the cash flow statement.

Which Statement Is Correct