Asked by Beyza Albayrak on May 06, 2024
Verified
Under IFRS bank overdrafts are classified as
A) operating activities.
B) investing activities.
C) financing activities.
D) cash and cash equivalents.
IFRS
International Financial Reporting Standards, a set of accounting standards providing global framework for preparing financial statements.
Bank Overdrafts
Occurs when withdrawals from a bank account exceed the available balance, creating a negative balance.
- Specify the differences among operating, investing, and financing operations.
Verified Answer
JP
Jesus PachekoMay 11, 2024
Final Answer :
D
Explanation :
Under IFRS, bank overdrafts are often classified as cash and cash equivalents if they are repayable on demand and form an integral part of an entity's cash management.
Learning Objectives
- Specify the differences among operating, investing, and financing operations.
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