Q . What is the definition of cash and cash equivalent .
A . Highly liquid investments
Readily convertible to known amounts of cash.
Subject to insignificant risk of changes in value.
Q . What are operating activities ?
A . Main Revenue producing activities of the entity and other activities that are not investing or financing activities like taxes paid and received.
Q . What are investing activities ?
A . Activities that relate to the acquisition and disposal of a long term asset and other investments.
Q .What are financing activities ?
A .Activities that cause changes to contributed equity and borrowing of an entity .
Q. Received or paid interest and dividends can be classified as what ?
A . Operating
as long as they are consistently treated
from period to period