Suppose a Company Pays Interest of $10,000 for the Year

question 14

Multiple Choice

Suppose a company pays interest of $10,000 for the year on borrowed amounts due in two years.Under IFRS,what is the most the company can report as cash outflows from financing activities?

• A)$10,000.
• B)$2,000.
• C)$5,000.
• D)$0.

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Definitions:

UML Class Diagram

A type of diagram in Unified Modeling Language that shows the structure of a system by illustrating classes, their attributes, operations, and the relationships among objects.

Class Methods

Methods defined within a class that describe the behaviors or actions that objects of the class can perform.

UML Class Diagram

A static structure diagram within the Unified Modeling Language (UML) that illustrates a system's architecture by depicting its classes, attributes, and the connections among those classes.

Public Access

A modifier in Java that allows members (methods or variables) of a class to be accessed from any other class.