Start learning →

A cash expenditure is eligible as an investing outflow only when it:

AResults in a recognised asset
BIs paid to a related party
CIs funded through borrowings
DExceeds the profit of the year
Answer & Solution
Correct answer: A. Results in a recognised asset
Spending that is expensed, such as routine advertising, cannot be investing because no asset is recognised.
Practise this question with Quill — CA Final →

Keep practising Ind AS 7 Statement of Cash Flows

Browse all Ind AS 7 Statement of Cash Flows questions for CA Final, or explore more Financialreporting topics.

Start a Ind AS 7 Statement of Cash Flows lesson →
Related questions