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

---

Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity, pioneered by Frederick Taylor.

Scientific Management

A management theory focusing on improving efficiency and labor productivity through scientific studies of tasks.

Frederick W. Taylor

An American mechanical engineer who is considered the father of scientific management, focusing on efficiency improvement through the analysis and optimization of workflow.