Which of the Following Statements Is True

question 62

Multiple Choice

Which of the following statements is true?

• A)GAAP classifies dividends paid as a financing activity,but IFRS allows them to be classified as either an operating or financing activity.
• B)GAAP allows interest paid to be classified as either an operating or financing activity,but IFRS requires that it be classified as a financing activity.
• C)GAAP classifies dividends received as an investing activity,but IFRS allows them to be classified as either an operating or investing activity.
• D)GAAP classifies interest received as either an operating or investing activity,but IFRS requires it to be classified as an investing activity.

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Definitions:

Gross Pay

The total amount earned by an employee before any deductions or taxes are taken out.

Medicare Tax

A federal tax that helps fund the Medicare program, which provides health insurance for individuals who are 65 years old and older or who meet other specific criteria.

Salaries Payable

An account on the balance sheet that represents the amount of unpaid wages owed to employees at the end of a reporting period.

Payroll Register

A payroll register is a detailed document that records all employees' payroll activities, including wages, salaries, deductions, and net pay for a specific period.