Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?

• A) The FASB requires dividends paid to be classified as an operating activity.
• B) The FASB requires interest paid to be classified as a financing activity.
• C) The FASB allows dividends paid to be classified as an operating activity or as a financing activity.
• D) The IASC allows dividends paid to be classified as an operating activity or as a financing activity.

---

Definitions:

Marginal Revenue

The additional revenue that a producer receives from selling one more unit of a good or service.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Lack of Response

The absence of a reaction or reply to a communication or situation, often indicating disinterest or avoidance.

Critical Evaluation

involves analyzing and assessing the merits and faults of something in detail to understand its value, quality, or importance.