Exam 5: Statement of Financial Position and Statement of Cash Flows

IFRS requires that a complete set of financial statements be presented annually and that for comparative purposes, companies must include three complete sets of financial statements and related notes.

An asset which is expected to be converted into cash, sold, or consumed within one year of the statement date is always reported as a current asset.

The presentation of long-term liabilities in the statement of financial position should disclose

An example of an item which is not an element of working capital is

The account form and the report form of the statement of financial position are both acceptable under IFRS.

Net cash provided by operating activities divided by average total liabilities equals the

The statement of cash flows provides answers to all of the following questions except

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

Financial statement readers often assess liquidity by using the current cash debt coverage ratio.

On the statement of financial position all of the following are reported as investments except

In preparing a statement of cash flows, sale of treasury stock at an amount greater than cost would be classified as a(n)