Under IFRS,cash Outflows for Interest Expense Are Classified as

question 48

Multiple Choice

Under IFRS,cash outflows for interest expense are classified as

• A)Operating.
• B)Investing.
• C)Financing.
• D)Operating or investing,assuming that the classification is applied consistently across all periods.
• E)Investing or financing,depending upon who is the recipient of the interest paid.

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Definitions:

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

ROEs

Return on Equity, an indicator of financial efficiency determined by dividing a company's net income by its shareholders' equity, reflects how well management utilizes company assets to generate earnings.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations.