All of the Following Statements Related to Reporting Cash Flows

question 164

Multiple Choice

All of the following statements related to reporting cash flows from operating activities under U.S.GAAP and IFRS are true except:

• A)The definition of cash and cash equivalents is similar for U.S.GAAP and IFRS.
• B)U.S.GAAP requires cash flows from interest revenue and dividend revenue be classified as operating activities.
• C)IFRS permits classification of interest revenue and dividend revenue under operating or investing activities.
• D)U.S.GAAP requires cash outflows for interest expense to be classified as financing activities.
• E)IFRS permits classification of interest expense under operating or financing activities.

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Definitions:

Social Learning

The process of learning behaviors through the observation of others, which can involve direct instruction, modeling, and imitation.

Marmoset

A small, tree-dwelling primate found primarily in the forests of South America.

Opening Container

The action or process of making an enclosed space accessible by removing or adjusting a closure mechanism.

Honeybee Dance

A behavior exhibited by honeybees to communicate the direction and distance of food sources to other members of the hive.