alleryStart learning →For a non-financial entity, interest paid is classified as:
AFinancing cash flow
BFree choice of any head
COperating cash flow
DInvesting cash flow
Answer & Solution
Correct answer: A. Financing cash flow
Ind AS 7 treats interest paid by other entities as the cost of obtaining finance, hence financing.
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.
Related questions
A non-financial entity received dividend Rs 12 and interest Rs 8, paid dividend 30 and intCash 20, demand deposit 60, 2-month T-bill 30, 9-month FD 40, integral overdraft 25. TotalAll sales Rs 900 are on credit; receivables rose from 80 to 110. Cash collected from custoCash share issue 200, debt converted 500, loan raised 100, repaid 60, dividend 40. Net finPlant with book value Rs 55 lakh sold for Rs 40 lakh cash. Investing inflow?Opening cash equivalents Rs 120; operating +300, investing -180, financing -50. Closing baPBT Rs 500 lakh after depreciation 80, finance cost 40, interest income 25. Operating profAn increase in a non-cash current asset is, in the indirect method: