Both U.S.GAAP and IFRS permit considerable flexibility with respect to the display of information in the statement of cash flows. Within the investing and financing cash flow categories, the presentation for most items should _____.
A)not net cash inflows against cash outflows
B)net cash inflows against cash outflows
C)net cash inflows against net income
D)net cash inflows against free cash flows
E)net free cash flows against cash outflows

Question

Quizplus · Accepted Answer

Under both U.S. GAAP and IFRS, the general rule for the statement of cash flows is not to net cash inflows against cash outflows within the investing and financing sections. This ensures that the statement provides a clear view of the cash movements in these categories.

Both USGAAP and IFRS Permit Considerable Flexibility with Respect to the the Display