Cash flows arising from each of the following activities of a financial institution may be reported on a net basis:
I - Cash payments and receipts for the acceptance and repayment of deposits with a fixed maturity date.
II - The placement of deposits with and withdrawal of deposits from other financial institutions.
III - Cash advances and loans made to customers and the repayment of those advances and loans.
IV - Cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date.
A) I, II and IV.
B) II, III and IV.
C) I, III and IV.
D) I, II and III.

Question

Quizplus · Accepted Answer

Financial institutions can report cash flows on a net basis for activities involving fixed maturity dates, such as deposits and loans, as these are considered operating activities.

Cash Flows Arising from Each of the Following Activities of a Financial