Under IFRS, Cash Receipts from Interest and Dividends Are Classified

question 7

Multiple Choice

Under IFRS, cash receipts from interest and dividends are classified as

• A) financing activities.
• B) investing activities.
• C) operating activities.
• D) either operating or investing activities.

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Definitions:

Prior Service Credit

A pension plan feature that grants employees credit for service periods before the commencement of the pension plan, affecting their benefits.

Defined Benefit Pension Plan

A retirement plan where the benefits that an employee will receive upon retirement are defined based on a formula considering factors such as salary history and duration of employment.

Service Cost

The portion of the pension expense that is recognized for the increase in pension benefits related to employee services of the current period.