Under USGAAP, the Statement of Cash Flows Classifies Cash Expenditures for for Interest

question 136

True/False

Under U.S.GAAP, the statement of cash flows classifies cash expenditures for interest on debt as an operating activity but classifies cash expenditures for dividends to shareholders as a financing activity.

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Definitions:

Immediate Physical Harm

Direct physical injury or damage that occurs without delay.

Assault

Any word or action intended to make another person fearful of immediate physical harm; a reasonably believable threat.

Reasonably Believable

A standard of evidence which suggests that a claim or assertion is plausible based on the circumstances and available information.

Motive Behind Intent

The underlying reason or reasons prompting an individual to decide or plan to do something.