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According to the Financial Accounting Standards Board (FASB), which of the following is a cash flow from a "financing" activity?

cash outflow to the government for taxes. cash outflow to shareholders as dividends. cash outflow to lenders as interest. cash outflow to purchase bonds issued by another company.

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Question ajoutée par خالد ابراهيم , Senior Accountant , Al Khayyat Group /Peugeot and Mazda Automative agent in Jordan
Date de publication: 2013/12/04
Muhammad Faheem
par Muhammad Faheem , Consultant- Accounts, Audit & Taxation , Basim Associates

As per IAS7, Interest and dividend received and paid may be classified as operating, investing, or financing cash flows, provided that they are classified consistently from period to period.

Cash flow arising from taxes on income are normally classified as operating, unless they can be specifically identified with financing or investing activities.

Cash outflow to shareholders as dividend and cash outflow to lenders as interest are the correct answer in the light of the above explaination as per IAS-7.

Mohammad Ibrahim, CMA, CertIFR
par Mohammad Ibrahim, CMA, CertIFR , Accounting Operation Team Leader , KFH ( Kuwait Finance House )

cash outflow to the government for taxes. ( Is Operating Activity )cash outflow to shareholders as dividends. ( Is Financing Activity ) cash outflow to lenders as interest. ( Is Operating Activity )cash outflow to purchase bonds issued by another company. ( Is Investing Activity )

Khurrum Iqbal
par Khurrum Iqbal , Senior Accounts Manager , JAAZ Engineering & Trading Services

 

Operating Activity: Cash outflow to the government for taxes.

Financing Activity: Cash outflow to shareholders as dividends.

Financing Activity: Cash outflow to lenders as interest.

Investing Activity: Cash outflow to purchase bonds issued by another co.

 

Note:

The above may be classified differently if the company itself is a Finance or a Banking company or Non Banking Financial Institution, and if there is a change from outflows to inflows. 

 

cash outflow to lenders as interest. >> 

علاءالدين احمد محمد إبراهيم
par علاءالدين احمد محمد إبراهيم , المحلل المالى ومسئول الميزانية , شركة خطوط اللياقة للأجهزة الرياضة المحدودة

cash outflow to shareholders as dividends.

cash outflow to lenders as interest.

 

Sulayman Abbas Ladan
par Sulayman Abbas Ladan , Deputy Bursar , Ahmadu Bello University

Cash outflow to purchase Bonds issued by another company

Utilisateur supprimé
par Utilisateur supprimé

ANSWER    cash outflow to lenders as interest

Sahar Alech
par Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Cash out flow to shareholders is a financing activity

Abdul Wahab
par Abdul Wahab , Credit Controller - Group , Al-Jazeera Paints Factory

cash outflow to shareholders as dividends.

Utilisateur supprimé
par Utilisateur supprimé

cash outflow to dividends & interest to lenders

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