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

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Definitions:

Rigid

The quality of being inflexible either physically or in thoughts and behaviors, often leading to difficulties in adaptation or tolerance.

Developmental

Related to the process of growth and change over time, especially in relation to physical, mental, or emotional progress.

Interactive Processes

Refers to the dynamic ways in which entities or individuals act and react to each other in a system.

Family Life

The social and domestic experiences and structures created by living with family members or relatives.