Question bank — IAS 7 — Statement of Cash Flows
349 questions in FR/EN/ES, scored by the real scoring engine.
Why a statement of cash flows, and for whom9 questions
- An entity may present its statement of cash flows as an optional document, separate from its financial statements, provided it is published in the same year.True / falseL1
- A bank, for which cash is in a sense its stock in trade, is exempt from presenting a statement of cash flows.True / falseL1
- Used with the other financial statements, the statement of cash flows helps compare the operating performance of entities that apply different accounting treatments.True / falseL1
- Past cash flows are of no use in assessing the amount, timing and certainty of future cash flows.True / falseL1
- For which periods must an entity present a statement of cash flows?Single choiceL1
- Why does the standard require a statement of cash flows from all entities, whatever their activities?Single choiceL1
- Used with the other financial statements, what does the statement of cash flows notably help assess?Single choiceL1
- An analyst compares the net cash flows achieved by Corlisse with those he had forecast two years earlier. Which use of cash flow information does this illustrate?Single choiceL1
- Halrane, an insurance company, and Ulvenne, a bakery chain, are preparing their IFRS financial statements. Which of them must present a statement of cash flows?Single choiceL1
Cash flows and activities: the definitions14 questions
- Under the standard, cash comprises cash on hand and demand deposits.True / falseL1
- Operating activities are defined residually: besides the principal revenue-producing activities, they include everything that is neither investing nor financing.True / falseL1
- Kertara buys another company's bonds, held for the long term, paying for them with a bank loan drawn the same day. The payment for the bonds is a financing cash flow.True / falseL2
- What does the term “cash flows” mean in the standard?Single choiceL1
- Under the definition, what characterises investing activities?Single choiceL1
- Which transaction matches the definition of financing activities?Single choiceL1
- Fenvora receives an insurance settlement after the theft of goods held in inventory. With no other link to investing or financing, how do the definitions classify this flow?Single choiceL2
- Rosvenne issues new shares for cash and, the following month, uses the funds to buy a factory. How should the two flows be classified?Single choiceL2
- Which of the following flows are operating activities under the definitions?Multiple choiceL1
- Which of the following flows of Nalline, a manufacturing company, are investing activities?Multiple choiceL2
- Which of the following flows of Kerline are financing activities?Multiple choiceL2
- Ostdane buys an office building for its headquarters, paying for it with a mortgage loan disbursed through its bank, and presents the payment for the building as a financing cash flow. What is the error?Single choiceL1
- To classify its cash flows, the controller of Tormira uses this rule: “only flows linked to income recognised in profit or loss are operating; any other flow is investing”. What is the error?Single choiceL2
- Peltis grants an 18-month loan to its joint venture and presents the payment as a financing activity, on the ground that it is a “financing transaction”. What is the error?Single choiceL2
Cash, equivalents and overdrafts22 questions
- To be a cash equivalent, an investment must notably be readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.True / falseL1
- Highly liquid listed shares that can be sold within a day are normally cash equivalents.True / falseL1
- Transferring funds from a current account to a deposit qualifying as a cash equivalent is presented as an investing outflow.True / falseL2
- From which date is the short maturity (about three months) of a cash equivalent normally assessed?Single choiceL1
- In which case can an equity instrument be a cash equivalent?Single choiceL1
- Which indicator does the standard give of a bank overdraft that forms an integral part of cash management?Single choiceL2
- Why must the entity disclose the policy it adopts in determining the composition of its cash and cash equivalents?Single choiceL2
- At 31 December, Lommira holds the following investments. Which of them can, in principle, be cash equivalents?Multiple choiceL2
- Which of the following statements about Calrane's cash are correct?Multiple choiceL3
- At 31 December, Saldral holds: cash on hand …; demand accounts …; 2-month term deposit taken out on 1 December …; 6-month term deposit taken out on 1 November …; listed shares …. Compute closing cash and cash equivalents.CalculationL1Variant
- Fenrel has a 30 June reporting date. At that date it holds: cash on hand …; demand deposits …; 3-month certificate of deposit acquired on 10 June …; 5-year government bonds acquired 58 months ago …; equity fund units …. What is the amount of cash and cash equivalents?CalculationL2Variant
- At Isvio, cash and cash equivalents amounted to … at the start of the year. During the year, Isvio transferred … from its current account to a one-month deposit (a cash equivalent), generated net operating cash flows of … and paid … for a machine. Compute the net change in cash presented and closing cash.CalculationL2
- At 31 December, Ulvelle reports: current accounts in credit …; overdraft repayable on demand on its main account, which alternates every month between positive and overdrawn balances …; overdraft on a second account, overdrawn without interruption for three years and renegotiated as a funding line … (case data). Compute closing cash and cash equivalents.CalculationL3
- Rostis classifies as a cash equivalent an 18-month savings certificate acquired 16 months ago, on the ground that it matures in 2 months. What is the error?Single choiceL2
- Kerbane's overdraft, repayable on demand, is overdrawn on some days and positive on others, depending on customer receipts; it is used for day-to-day management. Kerbane nevertheless presents it as a borrowing and classifies its changes as financing cash flows. What is the error?Single choiceL3
- In its statement, Brabris presents an investing outflow “1-month placements” of 300,000 and an investing inflow “repayment of 1-month placements” of 300,000; these placements qualify as cash equivalents. What is the error?Single choiceL3
- On 20 November, Salnore places 500,000 in a 3-month term account with its bank; early withdrawal is possible at any time, with a penalty limited to a few days of interest (case data). How should this placement be qualified at 31 December?Single choiceL2
- Norzane's main account, repayable on demand, was in credit for eight months of the year and overdrawn for four months; it is overdrawn by 40,000 at the reporting date. How should it be presented?Single choiceL2Variant
- For four years Delquine has used a bank facility that is permanently overdrawn, around 900,000, to finance its inventories; the bank has attached an annual reduction schedule to it (case data). How should it be presented?Single choiceL3Variant
- On 5 December, Vervora buys preferred shares of a top-tier issuer, redeemable on the following 15 January at a contractually fixed price (case data). How should they be qualified at 31 December?Single choiceL3
- Ralrane's treasurer proposes to include in cash and cash equivalents: (1) a 4-month term deposit taken out on 1 December; (2) a money market fund whose net asset value varies very little, redeemable daily (case data); (3) a 2-year credit line fully drawn. Write a reasoned analysis of each item.JudgmentL3
- The Osttara group plans to define its policy on the composition of cash: whether to include its subsidiaries’ overdrafts, some fluctuating, others permanent, and term accounts of 1 to 6 months. Write a reasoned accounting policy memo.JudgmentL3
The three-activity principle17 questions
- The statement of cash flows reports the cash flows of the period classified into three categories: operating, investing and financing activities.True / falseL1
- The entity presents its cash flows by activity in the manner most appropriate to its business, so that users can assess the impact of those activities on its financial position and on its cash.True / falseL1
- When a loan instalment includes interest and capital, the entity must present the whole instalment as a single financing line.True / falseL2
- How many categories of activities does the statement of cash flows distinguish?Single choiceL1
- What is the purpose of classifying cash flows by activity?Single choiceL1
- Fenmée pays a loan instalment comprising capital and interest; its policy is to classify interest paid as operating activities (case data). How should the instalment be presented?Single choiceL1
- Queltis's statement shows: operating cash flows +620,000, investing cash flows −410,000, financing cash flows −95,000. What does the sum of these three subtotals represent?Single choiceL2
- Which of the following statements about the structure of the statement are correct?Multiple choiceL1
- Which of these transactions of Ostnore may give rise to flows classified in different activities within a single transaction?Multiple choiceL2
- Galdine's draft statement shows the following possible errors. Which are genuine errors?Multiple choiceL2
- Arquine's statement shows operating cash flows of … (net inflow), investing cash flows of … (net outflow) and financing cash flows of … (net inflow). Opening cash was …. Compute the net change and closing cash.CalculationL1Variant
- A difficult year for Talquine: its operating activities used … of cash, its asset disposals generated a net investing inflow of …, and it repaid borrowings for a net financing outflow of …. Its opening cash was …. Determine the net change for the period and end-of-period cash.CalculationL2Variant
- Zelrel pays a loan instalment of …, of which … is interest. Its policy classifies interest paid as operating activities (case data). Compute the amounts to present in operating and in financing.CalculationL1Variant
- Fenlisse owes … at the start of the year on a loan at an annual rate of …; at year-end it pays an annuity of … covering the year’s interest and part of the capital. Interest paid is classified as operating under its policy (case data). Determine the operating and financing parts of the annuity.CalculationL2Variant
- Peltara's accountant computes the change in cash as: operating 410,000 + investing 290,000 + financing 75,000 = 775,000, although investing is a net outflow and financing a net inflow. What is the error?Single choiceL2
- Fenmira, which classifies interest paid as operating (case data), presents in financing a line “repayment of borrowings 250,000”, of which 40,000 is interest. What is the error?Single choiceL2
- Tirvane's statement includes a fourth heading “miscellaneous cash flows” grouping a loan granted, a loan repayment and an insurance settlement on inventory. What is the error?Single choiceL1
Operating activities18 questions
- Payments to suppliers for goods and services and payments to employees are operating cash flows.True / falseL1
- Because the gain on the sale of an item of plant is included in profit or loss, the receipt of the sale price is an operating cash flow.True / falseL1
- For a securities dealer, purchases and sales of securities held for dealing or trading are classified as investing activities.True / falseL2
- Which of these flows is an example of an operating cash flow?Single choiceL1
- Brislane rents out vehicles short term and then sells them after two years in the ordinary course of business (IAS 16 para. 68A, context data). How should the payment to buy the vehicles be classified?Single choiceL2
- Which classification does the standard give to receipts and payments on contracts held for dealing or trading purposes?Single choiceL1
- Why is the amount of operating cash flows regarded as a key indicator?Single choiceL1
- Which of these flows of Zelquine are operating cash flows?Multiple choiceL2
- Which of these flows of Velmira, an investment bank, are operating?Multiple choiceL2
- Saltara, a wholesaler, is considering the following classifications. Which are compliant?Multiple choiceL3
- Orlisse sells a machine for 70,000 (gain of 25,000) and presents 70,000 in its operating cash flows, on the ground that the gain is in its operating profit. What is the error?Single choiceL2
- Calquine manufactures equipment that it rents out for three years and then sells in the ordinary course of business (IAS 16 para. 68A, context data). It presents manufacturing costs as investing and resale proceeds as investing. What is the error?Single choiceL3
- Fiorquine, a securities broker-dealer, classifies as investing the purchases of securities in its trading book, which are resold within a few days. What is the error?Single choiceL2
- Rosmira, a haulier, receives 180,000 from its insurer for a truck destroyed in an accident; the truck was an item of property, plant and equipment used for deliveries (case data). Which classification is most defensible for this settlement?Single choiceL2Variant
- Ostlisse rents forklifts to its customers for four years and then systematically sells them on the second-hand market, which is part of its ordinary activities (IAS 16 para. 68A, context data). How should the price received on reselling a batch of forklifts be classified?Single choiceL3Variant
- Sortara, an industrial group, holds two bond portfolios: the first is actively managed to make short-term trading gains, the second is held to maturity to invest lasting surpluses (case data). How should purchases in each portfolio be classified?Single choiceL3
- Kermont, a software publisher, receives during the year: (1) customer subscriptions; (2) the sale price of its old servers; (3) a government operating grant; (4) the repayment of a loan it had granted to a distributor. Write an analysis classifying these receipts.JudgmentL3
- Ralvenne's management wants to present the proceeds from selling an industrial site (2.4 million) as operating, to show positive operating cash flows and reassure its lenders. Write a memo to the audit committee on this plan.JudgmentL3
Investing activities22 questions
- Only spending that leads to an asset recognised in the statement of financial position can be classified as investing activities.True / falseL1
- Payments relating to capitalised development costs and to self-constructed property, plant and equipment can be classified as investing activities.True / falseL2
- Which of these flows is an investing cash flow?Single choiceL1
- How are cash flows on futures, forwards, options and swaps that are neither held for trading nor classified as financing classified?Single choiceL2
- Velquine sells a machine: cost 300,000, accumulated depreciation 220,000, price received 95,000. What amount appears in investing cash flows?Single choiceL2
- Which of the following payments by Brabane can be classified as investing activities?Multiple choiceL2
- In Sormont's statement, which of these investing lines are correctly prepared?Multiple choiceL3
- Ervane sold a kiln: cost …, accumulated depreciation …, gain on disposal recognised … (case data). Compute the carrying amount derecognised and the price received presented in investing.CalculationL2Variant
- On selling a batch of vans, Ostvenne derecognised assets with a cost of …, depreciated by …, and recognised a loss on disposal of … (case data). What is the carrying amount derecognised and what cash receipt appears in investing?CalculationL2Variant
- At Lirquine, net property, plant and equipment moves from … to …. The depreciation charge is … and the carrying amount of assets sold is …. All acquisitions were paid in cash (case data). Compute the investing outflow for acquisitions.CalculationL2Variant
- Morzane's equipment fleet had a net value of … at the start of the year and … at the end. The year bore … of depreciation, and equipment with a net value of … was sold. No purchase remains unpaid (case data). What amount of equipment purchases appears as an investing outflow?CalculationL2Variant
- Selmont acquired … of property, plant and equipment. The amount owed to suppliers of fixed assets moves from … to …. It also capitalised … of development costs, paid during the year (case data). Compute the related investing outflows.CalculationL3
- To improve its operating cash flows, Ulvio presents as investing 420,000 of research spending recognised as an expense, on the ground that it prepares its future products. What is the error?Single choiceL2
- Ulmont acquired a press for 650,000, of which 200,000 is still owed to the supplier at year-end, and presents an investing outflow of 650,000. What is the error?Single choiceL3
- In Kerdine's statement, the line “disposals of PPE” of 130,000 corresponds to the carrying amount of the assets sold, whereas the price received was 175,000. What is the error?Single choiceL3
- Gelmont sells an item of equipment for cash: cost …, accumulated depreciation …, price received … (case data). Record the disposal entry; the amount debited to cash is the investing cash flow.Journal entryL2
- Isbane buys and pays cash for a bottling line costing … (case data). Record the acquisition entry, whose credit to cash is an investing outflow.Journal entryL1
- Dalmont sells an office building: cost …, accumulated depreciation …, price received by transfer … (case data). Record the disposal entry and identify the cash flow presented.Journal entryL2
- Tormont spends 240,000 on new software: 180,000 of development meeting the capitalisation criteria and 60,000 of user training, recognised as an expense (case data). How should the payments be classified?Single choiceL2
- Halmont, a manufacturer, subscribes 2 million of debt securities of a listed company, maturing in 4 years, which it will hold until redemption (case data). How should the payment be classified?Single choiceL3
- Isquine acquires a machine for 500,000: 150,000 paid in cash, the balance settled through a 3-year supplier credit, of which it repays 50,000 before year-end (case data). What investing outflow should be presented for the acquisition?Single choiceL3
- Selquine's controller is preparing the investing section: (1) machines bought for cash; (2) equipment received under a lease; (3) sale of a warehouse at a gain; (4) study costs for an abandoned project, expensed. Write a memo supporting the treatment of each item in the statement.JudgmentL3
Financing activities20 questions
- Cash payments by a lessee for the reduction of the outstanding lease liability are financing cash flows.True / falseL1
- A payment to owners to acquire or redeem the entity's shares is an investing cash flow, the entity acquiring securities.True / falseL2
- Which of these flows is a financing cash flow under the standard?Single choiceL1
- Why does the standard require financing cash flows to be presented separately?Single choiceL1
- Rozane pays 96,000 of lease payments under a lease recognised on the balance sheet, of which 21,000 is interest; its policy classifies interest paid as operating (case data). What amount should be presented in financing?Single choiceL2
- Which of the following flows of Zantis are financing cash flows?Multiple choiceL2
- When reviewing Fenquine's statement, which of these financing presentations are correct?Multiple choiceL3
- Fenzane's bank borrowings move from … to …. It drew … of new loans; there are no non-cash changes (case data). Compute repayments for the period.CalculationL2Variant
- At the start of the year Belvane owed … to its banks; at the end it owes …. During the year it took out a new loan of …, and no non-cash movement affected these debts (case data). What amount of repayments appears in financing?CalculationL2Variant
- Sarquine's borrowings move from … to …. During the year: new loan drawn …; bonds converted into shares …; increase in a foreign-currency loan due to exchange rates … (case data). Compute cash repayments.CalculationL3
- Elquine's share capital and premium move from … to …. The increase includes a capitalisation of reserves of … and shares issued in exchange for a contribution of land for … (case data). Compute the cash proceeds from share issues.CalculationL2
- Marlisse's lease liability moves from … to …. New leases were recognised for … and interest for the year amounts to …, paid in full with the lease payments (case data; measurement under IFRS 16). Compute the principal payments presented in financing and total lease payments made.CalculationL3
- Calbris presents all its lease payments (principal and interest) on leases recognised on the balance sheet as operating cash flows, “like office rent”. What is the error?Single choiceL2
- Velquine's borrowings fall by 500,000 during the year, of which 350,000 is due to bonds converted into shares; Velquine presents 500,000 of repayments in financing. What is the error?Single choiceL3
- Quelmont obtains and receives a bank loan of … (case data). Record the entry; the debit to cash is a financing inflow.Journal entryL1
- Delbris issues new shares fully paid in cash for … (case data; capital and premium combined). Record the entry and identify the cash flow presented.Journal entryL2
- Saldine pays a lease instalment of …, of which … is interest on the lease liability (case data; measurement under IFRS 16). Record the payment entry and state the financing part.Journal entryL2
- Ostbris buys back 5% of its own shares on the market for 900,000, in order to cancel them (case data). How should this payment be presented?Single choiceL2
- Lirdane pays during the year: 120,000 on leases recognised on the balance sheet (of which 30,000 is interest) and 18,000 for short-term leases not recognised under the exemption applied (case data). Its interest paid is classified as operating. What amount should be presented in financing?Single choiceL3
- Rosbane renegotiates a 2 million loan: the bank cancels it and grants a new one of 2.3 million, of which only 300,000 is paid into Rosbane’s account, the balance settling the old loan without passing through cash (case data). How should the transaction be presented?Single choiceL3
The direct method17 questions
- The standard encourages entities to report operating cash flows using the direct method.True / falseL1
- The direct method discloses major classes of gross cash receipts and gross cash payments from operating activities.True / falseL1
- Under the direct method, gross receipts and payments can only be obtained from the entity's cash accounting records.True / falseL2
- Why does the standard encourage the direct method?Single choiceL1
- Direct or indirect method: what changes in net operating cash flow?Single choiceL2
- Calmira does not track its receipts by nature in detail. How can it prepare a direct-method statement?Single choiceL2
- Which of these lines belong to a direct-method presentation?Multiple choiceL1
- To compute cash paid to suppliers by adjusting cost of sales, which items must be taken into account?Multiple choiceL2
- Brivora made sales of …, all on credit. Its trade receivables move from … to …. Compute cash received from customers.CalculationL2Variant
- During the year Peltane's credit sales reached …; its receivables balance fell from … at the start to … at the end. What amount of customer receipts should be presented under the direct method?CalculationL2Variant
- Tolquine's cost of goods sold is …. Inventories move from … to …, trade payables from … to …. Compute purchases for the period and cash paid to suppliers.CalculationL2Variant
- At Fenbris, a distributor, cost of sales is … for the year. Inventory fell from … to … and supplier credit lengthened, payables moving from … to …. Determine purchases and the amount paid to suppliers.CalculationL3Variant
- Zanbane's staff costs amount to …. Payroll liabilities (wages and contributions payable) move from … to …. Compute cash paid to and on behalf of employees.CalculationL2
- Velbris recognised revenue of …. Its trade receivables move from … to … and advances received from customers (contract liabilities) from … to … (case data). Compute cash received from customers.CalculationL3
- For its customer receipts, Quelsane computes: sales 900,000 + increase in receivables 60,000 = 960,000. What is the error?Single choiceL2
- For its supplier payments, Ormane uses: cost of sales 1,200,000 + decrease in payables 40,000 = 1,240,000, although its inventory rose by 90,000. What is the error?Single choiceL3
- Sarlane's “direct method” statement shows customer receipts, supplier payments, then “depreciation 150,000” and “provisions charged 30,000” as receipts. What is the error?Single choiceL3
The indirect method22 questions
- Under the indirect method, net operating cash flow is determined by adjusting profit or loss for non-cash transactions, deferrals or accruals of operating receipts or payments, and items associated with investing or financing.True / falseL1
- Under the indirect method, the undistributed share of profit of an associate is a non-cash item to remove from profit.True / falseL2
- What is the starting point of the indirect method (wording applicable before 2027)?Single choiceL1
- How is a net provision charge treated under the indirect method?Single choiceL2
- Which alternative presentation of the indirect method does the standard allow?Single choiceL2
- Which of these items are added back or deducted as non-cash items under the indirect method?Multiple choiceL2
- In Torbris's indirect reconciliation, which adjustments are deducted from profit?Multiple choiceL3
- Nalbris's profit: …. Depreciation: …. Trade receivables increase by …, inventories decrease by … and trade payables increase by …. Compute net operating cash flow (indirect method).CalculationL2Variant
- This year Ervelle reports profit of … after … of depreciation. Its customers paid faster (receivables down by …), but it built up stock (increase of …) and paid some suppliers earlier (payables down by …). What is its net operating cash flow under the indirect method?CalculationL2Variant
- Torbane's profit: …. It includes depreciation of …, a net provision charge of … and a gain on disposal of a machine of …. Working capital changes amount to a net outflow of …. Compute net operating cash flow.CalculationL3
- Vervane's consolidated profit: …, including a share of profit of an associate of …; the associate paid … of dividends, classified as operating under the group's policy (case data). Other items: depreciation …, deferred tax expense …, unrealised exchange loss on a loan …. Compute net operating cash flow (working capital assumed unchanged).CalculationL3
- Delvane's warranty provision moves from … to …; the charge for the year is … and uses (repairs paid) make up the rest of the movement. Profit is …, depreciation …; no other changes (case data). Compute the provision adjustment and net operating cash flow.CalculationL3
- Torvane starts from its profit before tax of … (presentation chosen by the entity, case data). It includes depreciation …, loss on disposal … and interest expense …; interest paid is classified as financing (entity policy). Inventories rise by …, receivables fall by …, payables rise by …. Tax paid is …. Compute net operating cash flow.CalculationL4
- Sorlane's balance sheets: inventories … then …; trade receivables … then …; prepayments … then …; trade payables … then …. Profit …, depreciation …. Compute the net working capital effect (negative if an outflow) and net operating cash flow.CalculationL4
- In Halvora's reconciliation, the 80,000 increase in inventories is added to profit, “because inventories are an asset of the entity”. What is the error?Single choiceL2
- Rosdane sold a warehouse at a gain of 120,000; its indirect reconciliation leaves this gain in profit, and the price of 640,000 also appears in investing. What is the error?Single choiceL3
- In Belquine's statement, the 90,000 litigation provision charge is deducted from profit, “because it is an expense to be paid”. No payment occurred. What is the error?Single choiceL3
- Quelbane recognises a share of profit of its joint venture of 250,000, of which 90,000 was paid to it as dividends. Its indirect reconciliation does not adjust the share and also presents the 90,000 as an investing inflow, in line with its method for classifying dividends received (case data). What is the error?Single choiceL4
- Nervane's operating cash flow is 1.1 million while its profit is only 300,000. The analyst notes a sharp fall in receivables and a rise in trade payables. Which explanation is consistent with the indirect method?Single choiceL3
- Ulvora's draft reconciliation: profit 500,000; + depreciation 140,000; + gain on disposal 35,000; − provision charge 25,000; − increase in receivables 60,000. What is the corrected operating cash flow?Single choiceL3
- Ostmira, a holding company, reports profit of 2 million, of which 1.4 million is its share of associates, which paid it only 0.3 million in dividends (classified as operating under its policy, case data). Its published operating cash flow is 2.2 million before any other adjustment. What conclusion should be drawn?Single choiceL4
- Case data: Pelvane, a manufacturer, applies IFRS 18 for its period beginning 1 January 2027. Operating profit 600,000; profit for the year 380,000; depreciation (operating category) 120,000; increase in trade receivables 50,000; income tax paid 110,000. No other items. What is net cash flow from operating activities (indirect method)?Single choiceL3
When to report net15 questions
- An entity may present its acquisitions and disposals of property, plant and equipment for the period as a single net amount.True / falseL2
- A financial institution may report on a net basis cash flows from advances and loans made to customers and their repayment.True / falseL2
- In which case may cash flows be reported on a net basis under the general provision?Single choiceL2
- Which of these examples is a flow on behalf of customers that may be presented net?Single choiceL2
- Which of these examples corresponds to items with quick turnover, large amounts and short maturities?Single choiceL3
- Which of these flows may be presented net?Multiple choiceL2
- For a financial institution, which of these flows may be presented net?Multiple choiceL3
- Tormelle, a property manager, collects … of rents on behalf of owners and pays … over to them; the flows reflect the owners’ activities (case data). Compute the net flow that may be presented.CalculationL2
- Velnore Card, a credit card issuer, advanced … to its cardholders and received … of principal repayments during the year (case data). Compute the net flow presented, as a negative amount if it is an outflow.CalculationL3
- Ardane paid … for acquisitions of PPE; it sold assets with a carrying amount of … at a gain of …. Compute the gross amounts to present in investing.CalculationL3
- Morbris presents a line “net investment in PPE: −340,000”, offsetting 900,000 of acquisitions and 560,000 of disposals. What is the error?Single choiceL2
- Tortara, a manufacturer, presents net the drawdowns and repayments of its 5-year bank loans, “because the amounts are large”. What is the error?Single choiceL3
- Ralnore Agency collects ticket prices on behalf of event organisers and pays them over, keeping only a separately invoiced commission (case data). How should the collections and remittances be presented?Single choiceL2
- Peldane's group treasury buys and resells every week investment securities with an original maturity of 2 months (not qualifying as cash equivalents), for amounts of about 50 million (case data). How should these flows be presented?Single choiceL3
- Selrane Bank wants to present net, on the one hand, loans made to its customers and their repayments and, on the other hand, the issue and repayment of its own 10-year bonds (case data). What is your view?Single choiceL3
Foreign currency flows and exchange effect15 questions
- At which rate does an entity record a cash flow arising from a foreign currency transaction?Single choiceL2
- Which rate may be used, as an approximation, to translate the cash flows of a foreign subsidiary?Single choiceL2
- How is the effect of exchange rate changes on cash held in foreign currencies presented?Single choiceL3
- Which of these statements about foreign currency cash flows are correct?Multiple choiceL2
- To translate the cash flows of its Brazilian subsidiary, which rates may the Halbris group use?Multiple choiceL3
- Ardesia pays a US supplier … USD on a day when 1 USD equals … EUR (case data). The invoice had been recorded at a different rate. Compute the operating outflow in euros.CalculationL2
- Fendane group: opening cash …; operating flows …, investing flows (outflow) …, financing flows (outflow) …; closing cash …, part of it held in foreign currencies. Compute the effect of exchange rate changes on cash.CalculationL3Variant
- At Isdane, cash and cash equivalents were … at the start and … at the end of the period, a large part in pounds sterling which weakened. The period's flows are: operating …, investing (outflow) …, financing (inflow) …. Determine the exchange effect line to present (negative if a loss).CalculationL3Variant
- Morbane's subsidiary generated … of operating cash flows in local currency (LC) evenly over the year. Weighted average rate: … EUR per 1 LC; closing rate: … EUR (case data). Compute the translated operating flow and the difference wrongly using the closing rate would have caused.CalculationL3
- Rindane holds a dollar account: opening balance … USD (rate …); customer receipt of … USD (spot rate …); supplier payment of … USD (spot rate …); closing rate … (rates in EUR per 1 USD). Compute the closing balance in euros and the exchange effect for the period.CalculationL4
- Velsane presents in its operating cash flows a “receipt” of 45,000 corresponding to the unrealised exchange gain on its dollar receivables. What is the error?Single choiceL2
- Borlane's statement shows: opening cash 400,000 + net flows 150,000 = 550,000, whereas closing cash is 532,000, part being held in Swiss francs. What is the error?Single choiceL3
- On 10 March Elsane receives 500,000 CHF from a customer, recorded on invoicing at a rate of 1.02 EUR; the rate on 10 March is 1.05 EUR per 1 CHF (case data). What operating receipt should be presented?Single choiceL2
- Galmira's Turkish subsidiary collects 80% of its receipts in the last month of the year, a period of sharp depreciation of the Turkish lira (case data). The consolidation team proposes a simple annual average rate. Which position should be taken?Single choiceL3
- Tornore group: closing cash includes 3 million dollars whose euro value rose by 120,000 EUR through exchange rates; the dollar debt rose by 200,000 EUR through exchange rates (case data). How do these effects appear in the statement?Single choiceL4
Interest and dividends31 questions
- Interest and dividends received and paid are each disclosed separately and classified consistently from period to period.True / falseL1
- For an entity that is not a financial institution, dividends paid must be classified as financing activities.True / falseL1
- The total amount of interest paid disclosed in the statement excludes interest capitalised into the cost of an asset under IAS 23.True / falseL2
- For an entity that is not a financial institution, how may interest paid be classified?Single choiceL1
- A trading company receives interest on its investments and dividends from its shareholdings. Between which activities may it choose for these receipts?Single choiceL1
- What rationale does the standard give for classifying dividends paid as financing?Single choiceL2
- Tormane used to classify interest paid as operating. This year, to improve operating cash flows, it classifies it as financing, with no other reason. What should be said?Single choiceL2
- Lirmane pays a loan instalment (capital 60,000, interest 9,000). It classifies interest paid as financing (case data). How should the instalment be presented?Single choiceL2
- Which of these classifications are permitted for a manufacturing entity?Multiple choiceL1
- Which of these disclosures about interest are required?Multiple choiceL2
- For its financial year beginning on 1 January 2026, Osttine is considering the following positions. Which comply with the applicable wording?Multiple choiceL3
- Calnore's interest expense amounts to …. Interest payable moves from … to …. Compute interest paid.CalculationL2Variant
- During the year Delrane recognised … of interest on its borrowings. It owed … of accrued unpaid interest at the start of the year and owes only … at the end. How much interest did it pay out?CalculationL2Variant
- Halbane recognised … of interest as an expense and capitalised … of interest into the cost of a plant under construction, paid during the year. Accrued expensed interest moves from … to …. Compute the total interest paid to disclose.CalculationL3
- Kervelle declared … of dividends during the year. Dividends payable move from … to …. Compute dividends paid.CalculationL2
- Galbris's retained earnings move from … to …; profit for the year is … and only dividends reduced reserves. Dividends payable move from … to …. Compute dividends declared and paid.CalculationL3
- Pirzane recognised … of interest income on its investments. Interest receivable moves from … to …. It classifies interest received as investing (case data). Compute interest received.CalculationL3
- Ostvelle discloses “interest paid of 300,000” in the notes, although it also paid 80,000 of interest capitalised into the cost of a warehouse under construction. What is the error?Single choiceL2
- Salrane presents interest paid of 175,000, the amount of its interest expense, although interest payable increased by 35,000. What is the error?Single choiceL3
- Halmira presents a single line “net interest” of −40,000, offsetting 120,000 of interest paid and 80,000 of interest received. What is the error?Single choiceL2
- Pirrel pays … of accrued interest recognised in the previous year (case data). Record the payment entry.Journal entryL1
- Fendis pays the dividend of … declared and recognised as a liability before the previous year-end (case data). Record the entry and state the possible classification of the flow.Journal entryL2
- Sorlis pays … of interest on a loan dedicated to building a warehouse; this interest is capitalised into the cost of the asset under IAS 23 (case data). Record the payment entry.Journal entryL2
- Calnis, a manufacturer, wants its operating cash flow to reflect the cost of its debt, and chooses for the first time a policy for classifying interest paid (case data). Which choice is compliant?Single choiceL2
- Ralmira, a holding company with no industrial activity, earns most of its income as dividends from unconsolidated investments (case data). Which classification of dividends received is most defensible?Single choiceL3
- Kalbris classifies interest paid as financing (case data). It paid 150,000 of expensed interest and 40,000 of interest capitalised into an asset under construction. Which presentation is most appropriate?Single choiceL3
- Velquine used to classify dividends paid as financing. It is acquired by a group that classifies dividends as operating and wishes to harmonise policies in its consolidated accounts (case data). How should the issue be handled in Velquine's own accounts?Single choiceL3
- Tirquine's CFO asks you for a memo on choosing the classification of interest paid, interest received, dividends received and dividends paid, for the group's first IFRS publication (year beginning in 2026). Write the memo.JudgmentL3
- Melvora's auditor notes: interest paid presented at the amount of the expense; interest capitalised into a warehouse omitted from the total; loan instalments presented in full in financing although the entity's policy places interest in operating. Write the correction memo.JudgmentL3
- Under the version of IAS 7 applicable with IFRS 18 (periods beginning on or after 1 January 2027), where does an entity classify the dividends it pays to its shareholders?Single choiceL1
- Case data: Doranne, a distributor with no main business activity of investing or providing financing to customers, applies IFRS 18 early for its period beginning 1 January 2026 and discloses this in its notes. It received 40,000 of interest on its investments. How does it present this cash flow for that period?Single choiceL2
Taxes on income20 questions
- Cash flows arising from taxes on income are separately disclosed and classified as operating, unless they can be specifically identified with financing and investing activities.True / falseL1
- When taxes paid are allocated over more than one activity, it is enough to present each portion in its activity, without disclosing the total.True / falseL1
- Tax paid for the period equals total income tax expense in profit or loss, including deferred tax.True / falseL2
- What is the default classification of income taxes paid?Single choiceL1
- Why are taxes paid usually classified as operating activities?Single choiceL2
- Brelane sells a subsidiary at a large gain; the related tax is identifiable and paid separately (case data). How should this tax flow be classified?Single choiceL2
- Which of these statements about taxes paid are correct?Multiple choiceL2
- In Nalmira's statement (direct method), which of these tax presentations comply?Multiple choiceL3
- Ralbris's current tax expense is … (case data, measured under IAS 12). The current tax liability moves from … to …. Compute tax paid.CalculationL2Variant
- Norbris's current tax for the year amounts to … (case data). At the start of the year it still owed … to the tax authority; at the end only … remains payable. How much tax did it pay out?CalculationL2Variant
- Selbris's total tax expense is …, of which … is deferred tax (case data). The current tax liability moves from … to …. Compute current tax and tax paid.CalculationL3
- At the start of the year Galvelle had a tax receivable (excess instalments) of …; at year-end it has a current tax liability of …. Current tax for the year is … (case data). Compute net tax paid.CalculationL3
- Brivelle paid … of income tax, of which … is specifically identifiable with the sale of an investment property presented in investing (case data). Compute the portion presented in operating and the total to disclose.CalculationL3
- Talvelle includes its income taxes paid in the line “payments to suppliers and employees”. What is the error?Single choiceL2
- Pirtara allocates its tax paid in proportion to each activity’s result (60% operating, 40% investing), without being able to link the flows to specific transactions, and does not disclose the total. What is the error?Single choiceL3
- Halnore pays … of current tax recognised as a liability (case data). Record the payment entry.Journal entryL1
- Velnore pays the prior year's tax balance, …, recorded as a current tax liability; no link to an investing or financing transaction is possible (case data). Record the entry and state the classification.Journal entryL2
- Fenlane receives a refund of 60,000 of income tax overpaid in prior years (case data). How should it be presented?Single choiceL2
- Ostbane issues a loan whose issue costs are tax-deductible; the related tax saving is spread over several quarterly instalments and cannot be isolated (case data). How should the effect on tax paid be classified?Single choiceL3
- Kalmont's statement presents “taxes paid: 420,000” in operating, equal to total tax expense (of which 70,000 is deferred tax); the current tax liability rose from 50,000 to 80,000 (case data). What corrected amount should be presented?Single choiceL3
Subsidiaries, associates and joint ventures held10 questions
- When an investment is accounted for using the equity method, the investor restricts its statement to cash flows between itself and the investee, such as dividends and advances.True / falseL2
- An entity that equity-accounts a joint venture need not present the advances it makes to it, as these are eliminated on consolidation.True / falseL3
- Halquine holds 30% of an equity-accounted associate. Which of these items appears in its statement?Single choiceL2
- Brelmont subscribes 2 million to a capital increase of its equity-accounted joint venture and lends it 500,000. Which flows should be presented?Single choiceL3
- Which of these flows does the Kelmont group present for its equity-accounted associates?Multiple choiceL3
- Selmira's investment in an associate moves from … to …. Its share of profit is …; no change other than dividends (case data). Compute dividends received.CalculationL2
- Corbane's investment in its joint venture moves from … to …. Corbane subscribed … in cash to a capital increase; its share of profit is …. Compute dividends received and the investing outflow.CalculationL3
- Pelquine's associate made a loss: Pelquine's share is a loss of …. The equity-accounted amount moves from … to …; only the share and dividends changed it (case data). Compute dividends received.CalculationL3
- Ostmont presents in investing a “receipt” of 180,000 equal to its share of profit in an associate that distributed nothing. What is the error?Single choiceL2
- The Rozmont group lent 1.2 million to its equity-accounted joint venture; its consolidated statement does not mention it, “intragroup transactions being eliminated”. What is the error?Single choiceL3
Acquiring or disposing of a subsidiary14 questions
- How is the total cash effect of gaining or losing control of a subsidiary presented?Single choiceL3
- What amount is presented in the statement for the acquisition of a subsidiary paid in cash?Single choiceL3
- An investment entity that must measure a subsidiary at fair value through profit or loss loses control of it. Which exemption may it apply?Single choiceL4
- For obtaining control during the period, which information does the entity disclose in aggregate?Multiple choiceL3
- The Rosdine group acquired one subsidiary (net outflow of 3 million) and sold another (net inflow of 1.8 million). Which of these presentations comply?Multiple choiceL4
- The Lirmont group acquires 100% of Taldine for consideration of …, of which … in new Lirmont shares and the balance in cash. Taldine holds … of cash. Compute the net investing outflow.CalculationL3Variant
- To gain control of Orvaldis, the Peltmont group pays … in cash and hands over … of its own shares. At the acquisition date Orvaldis has … in its bank accounts. What net amount appears in investing cash flows?CalculationL3Variant
- The Ardmont group sells its subsidiary Dorrane for …, of which … is payable in 18 months; Dorrane held … of cash at the disposal date (case data). Compute the net investing inflow for the period.CalculationL4
- Gelmont's consolidated trade receivables move from … to …. A subsidiary acquired during the year brought … of receivables at the date control was obtained. Compute the change in receivables to use in operating cash flow (negative if it reduces the flow).CalculationL4
- Belvane presents an outflow of 5 million for the acquisition of a subsidiary paid in cash, although the subsidiary held 900,000 of cash. What is the error?Single choiceL3
- In its indirect reconciliation, Falquine uses the gross change in its consolidated inventories, without removing the 600,000 of inventories brought by a subsidiary acquired. What is the error?Single choiceL4
- Halvelle gains control of Sorbane for 3 million paid in cash; Sorbane holds 250,000 of cash, 1.4 million of inventories and receivables and 600,000 of liabilities. Which presentation is complete?Single choiceL3
- Lirvane acquires a subsidiary whose cash (1.2 million) exceeds the cash price paid (0.9 million): the subsidiary was very liquid (case data). How should the transaction be presented?Single choiceL4
- The Fenmont group acquired the subsidiary Arbane (price 7 million, of which 2 in shares; cash acquired 0.8 million) and sold the subsidiary Quelmira (price 4 million received; cash disposed of 0.5 million). Write the memo on presenting these transactions in the consolidated statement and in the notes.JudgmentL4
Changes in interests without loss of control8 questions
- A parent's payment to acquire additional interests in a subsidiary it already controls is a financing cash flow.True / falseL3
- A partial sale of shares in a subsidiary without loss of control is accounted for as an equity transaction, and the cash flow is classified like other transactions with owners.True / falseL4
- Saldane holds 70% of a subsidiary and buys a further 20% from the minority shareholders for 3 million. How should the payment be classified?Single choiceL3
- In which case is a change in ownership interest without loss of control not classified as financing?Single choiceL4
- The Cordane group, which already controlled its 60% subsidiary, presents as investing the purchase of a further 25% for 2.2 million. What is the error?Single choiceL3
- Rosvane sells 15% of its 80%-owned subsidiary (keeping control) for 1.5 million and presents the receipt, net of the subsidiary’s cash, as investing. What is the error?Single choiceL4
- The Talbane group held 40% of Morquine (an associate) and buys a further 30% for 4 million, which gives it control (case data). How should the payment be classified?Single choiceL3
- Isquine buys 10% of a 75%-owned subsidiary, paying 1 million in cash and 0.5 million in one year (case data). Which presentation should be used for the year?Single choiceL4
Investing or financing without cash17 questions
- Investing and financing transactions that involve no cash are left out of the statement of cash flows and described elsewhere in the financial statements.True / falseL1
- Taking a warehouse on a lease recognised on the balance sheet gives rise to an investing outflow and a financing inflow of the same amount.True / falseL2
- Which of these transactions is a non-cash financing transaction?Single choiceL1
- Why is excluding non-cash transactions consistent with the objective of the statement?Single choiceL2
- Tormis acquires a company by issuing only its own shares. How does this acquisition appear in the statement?Single choiceL2
- Which of these transactions of Nervelle are excluded from the statement as non-cash?Multiple choiceL2
- For a 2 million debt-to-equity conversion, which of these presentations comply?Multiple choiceL3
- Galdane's additions to tangible assets amount to …, including right-of-use assets on new leases of … and a machine acquired by assuming the seller's loan of …; the rest is paid in cash. Compute the investing outflow.CalculationL2Variant
- During the year Marvane's fixed assets grew by …: land received in exchange for shares issued for …, offices taken on lease for …, and equipment paid in cash for the balance. What amount appears as an investing outflow?CalculationL2Variant
- Galtara's gross property, plant and equipment moves from … to …. Disposals (at cost) amount to …; new leases added … of right-of-use assets included in this item (case data). Compute acquisitions paid.CalculationL3
- Ulvio presents an investing outflow of 900,000 and a financing inflow of 900,000 for trucks taken on lease and recognised on the balance sheet. What is the error?Single choiceL2
- Bervane converted 3 million of bonds into shares; it correctly excludes the transaction from the statement but mentions it nowhere in its financial statements. What is the error?Single choiceL3
- At the commencement date of a lease, Telmont recognises a right-of-use asset and a lease liability of … (case data; measurement under IFRS 16). Record the entry; what is its effect on the statement for the period?Journal entryL1
- Ralvane converts … of bonds into new shares (case data; capital and premium combined). Record the entry and state its treatment in the statement.Journal entryL2
- An equipment supplier agrees that Corbris pays for a 1.1 million production line by directly assuming the bank debt that financed it (case data). What effect on Corbris's statement?Single choiceL2
- Kervelle acquires a building for 5 million: 1 million paid in cash, 4 million through a share issue to the seller (case data). Which presentation is correct?Single choiceL3
- Isbane presents 2.4 million of asset additions in investing, of which 0.9 million are right-of-use assets, and in financing “new lease liabilities: +0.9 million”; no note describes non-cash transactions. What should be corrected?Single choiceL3
Reconciling financing liabilities21 questions
- What is the objective of the disclosure on liabilities arising from financing activities?Single choiceL2
- Which of these items is a liability arising from financing activities?Single choiceL2
- How may an entity meet the disclosure requirement on financing liabilities?Single choiceL3
- Fendane presents one movement table for its financing liabilities and other assets and liabilities. What must it observe?Single choiceL3
- Which changes does the entity disclose, to the extent necessary, for its liabilities arising from financing activities?Multiple choiceL2
- Which of these items of Morbis fall within the disclosure on financing liabilities (and assets)?Multiple choiceL3
- When reviewing Calmont's financing liabilities reconciliation, which of these findings call for a correction?Multiple choiceL4
- Ralvane's financing liabilities: opening balance …; drawdowns …; repayments …; new leases …; exchange effect … (increase). Compute the closing balance of the reconciliation.CalculationL2Variant
- At the start of the year Fenmira's financial debt (borrowings and lease liabilities) amounted to …. It borrowed …, repaid …, signed leases for …, and the rise of the euro reduced its dollar debt by …. What closing balance does the reconciliation show?CalculationL3Variant
- Nelquine's borrowings move from … to …. Net financing cash flows (drawdowns less repayments) amount to … (outflow). Compute total non-cash changes to show.CalculationL3
- Norvora's reconciliation: opening borrowings …, net flows … (inflow), debt of an acquired subsidiary …; opening lease liabilities …, principal paid …, new leases …. Compute total financing liabilities at year-end.CalculationL4
- A Ormira loan measured at fair value moves from … to …. Repayments for the year: …; exchange effect: … (increase); no change other than fair value (case data). Compute the fair value change to present.CalculationL3
- Telbris's financing cash flows amount to … (net outflow) and include a share issue of … and dividends paid of … (classified as financing). Compute the cash flows relating to financing liabilities to carry into the reconciliation (negative if an outflow).CalculationL4
- Peldis's reconciliation moves from opening to closing showing only drawdowns and repayments; the residual difference of 300,000, due to new leases, is included in repayments. What is the error?Single choiceL2
- Pelline includes its ordinary trade payables in its financing liabilities reconciliation, “to give a complete view of debt”. What is the error?Single choiceL3
- Zelquine's reconciliation shows financing cash flows of −820,000, whereas the statement shows repayments of 1,100,000 and drawdowns of 300,000, with no explanation of the difference. What is the error?Single choiceL3
- Rozbane holds an interest rate swap, as an asset, hedging a loan whose flows are classified as financing; the swap settlements are also classified as financing (case data). Should it be included in the financing liabilities disclosure?Single choiceL3
- During the year Talmira’s debt increased by 1.5 million when an indebted subsidiary was acquired, and it repaid 400,000. How should these items be presented in the reconciliation?Single choiceL3
- Calquine publishes a “net debt” table mixing cash, borrowings, leases and an overdraft included in cash, with no other information on its financing liabilities. What assessment should be made?Single choiceL4
- Prepare for the Ostmira group the structure of the note on liabilities arising from financing activities: bank loans, a dollar bond, lease liabilities, debt of an acquired subsidiary and a hedging swap. Justify your choices.JudgmentL4
- The Delvis group wonders whether to include in the financing liabilities note: (1) its dividends payable; (2) a shareholder loan; (3) interest-bearing 3-year payables to fixed asset suppliers. Write a reasoned analysis.JudgmentL3
Supplier finance arrangements14 questions
- A letter of credit used solely as a guarantee for a supplier is a supplier finance arrangement.True / falseL2
- In a supplier finance arrangement, a finance provider pays the entity's suppliers, and the entity pays the provider on the same date or at a later date.True / falseL2
- What is the objective of the disclosure on supplier finance arrangements?Single choiceL2
- Which of these arrangements of Nelbris is a supplier finance arrangement?Single choiceL3
- Which maturity information does the entity disclose for its supplier finance arrangements?Single choiceL3
- Which of these disclosures are required, at the beginning and end of the period, for supplier finance arrangements?Multiple choiceL3
- When reviewing Peltvane's note on its reverse factoring programme, which of these findings call for a correction?Multiple choiceL4
- Lirdis's liabilities under its supplier finance arrangement amount to … at year-end; for … of that amount, suppliers have not yet been paid by the provider (case data). Compute the carrying amount of liabilities for which suppliers have already been paid.CalculationL3
- Selvis's liabilities under its arrangement: opening …; invoices added to the programme …; payments to the provider …; liabilities taken over from an acquired subsidiary …; exchange differences … (increase). Compute the closing carrying amount and total non-cash changes to describe.CalculationL4
- Tormane presents the payment of its suppliers by corporate credit cards as a “supplier finance arrangement”. What is the error?Single choiceL2
- Calvis's note on its supplier finance programme discloses: programme terms, carrying amount of liabilities and amount already paid to suppliers; it states that these liabilities are payable in 90 to 120 days. What is the error?Single choiceL3
- A bank offers Morbis's suppliers payment at 10 days, with a discount at their expense; Morbis continues to pay the bank at the original 60-day due date (case data). Is this a supplier finance arrangement?Single choiceL3
- Delvane has two programmes: one with terms extended to 180 days and security over inventories, the other with neither extension nor security (case data). How should terms and conditions be disclosed?Single choiceL4
- The distributor Nalvis lists: (1) a bank reverse factoring programme; (2) letters of credit guaranteeing imports; (3) purchasing cards; (4) a discount offered by a supplier for cash payment. Write a qualification analysis and the list of disclosures to provide.JudgmentL4
Components of cash and reconciliation12 questions
- The entity discloses the components of cash and cash equivalents and reconciles the amounts in the statement of cash flows with the items in the statement of financial position.True / falseL1
- The effect of changing the policy used to determine what makes up cash and cash equivalents is reported under IAS 8.True / falseL1
- As the composition of cash and cash equivalents is fixed by the standard with no room for judgement, the entity need not disclose its policy for determining it.True / falseL2
- Why may a reconciliation between cash in the statement of cash flows and the statement of financial position be needed?Single choiceL1
- Halbane decides no longer to classify as cash equivalents some money market funds previously included. How should this change be treated?Single choiceL2
- What information must Ostmira give on how it determines its cash and cash equivalents?Single choiceL2
- Corlis's statement of financial position: “cash” …; 2-month deposits (equivalents) presented in “other financial assets” …; overdraft integral to cash management presented in “borrowings” …. Compute cash in the statement of cash flows.CalculationL1
- Velbris's statement shows closing cash of …. It includes an integral overdraft of … presented in borrowings and 1-month commercial paper of … presented in investments. What amount appears in the “cash” line of the statement of financial position?CalculationL2
- Calmira's policy (case data) is to include in cash deposits with an original maturity of 3 months or less and its on-demand overdrafts. At 31 December: cash and accounts …; 1-month deposits …; 6-month deposits …; on-demand overdrafts …. Compute cash in the statement.CalculationL2
- Closing cash in Nelmira's statement (720,000) differs from the “cash” line of its statement of financial position (800,000) because of an overdraft included in cash; no explanation is given. What is the error?Single choiceL1
- Brelvis now excludes from cash some funds previously included and presents the difference (400,000) as an investing outflow of the year, without restating comparatives. What is the error?Single choiceL2
- Selmira includes certain overdrafts and deposits of up to 3 months in cash, but its notes do not describe the policy adopted. What is the error?Single choiceL2
Restricted cash and encouraged disclosures11 questions
- The entity discloses, with a management commentary, the amount of significant cash balances it holds that the group cannot use.True / falseL2
- Disclosure of the amount of undrawn borrowing facilities is mandatory.True / falseL2
- Which of these cases illustrates cash not available for use by the group?Single choiceL2
- Why does the standard encourage separate disclosure of cash flows that increase operating capacity and those that maintain it?Single choiceL2
- Which of these disclosures is encouraged, rather than required, by the standard?Single choiceL3
- Among these disclosures, which are required (not merely encouraged)?Multiple choiceL2
- The Kerlis group holds cash in several countries. Which of these balances call for the restricted cash disclosure, if significant?Multiple choiceL3
- The Morlis group holds 12 million of cash, of which 5 million in a subsidiary subject to strict exchange controls; its notes do not mention it. What is the error?Single choiceL2
- An auditor reports as non-compliance the lack of disclosure of Talvis's undrawn borrowing facilities. What is the auditor's error?Single choiceL3
- Peldane's subsidiary, in a country where currency transfers require prior authorisation rarely granted, holds 2 million out of group cash of 9 million (case data). What disclosure should be given?Single choiceL3
- Brelmira's management, which cut maintenance capital spending to pay an exceptional dividend, is hesitant to publish the split between capacity-maintaining and capacity-increasing investment. What advice should be given?Single choiceL3