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:

Subleases

Secondary leases whereby the original tenant rents out their rental property to a new tenant, transferring some or all of their tenancy rights to the subtenant.

Liable

Legally responsible or obligated to provide compensation for causing loss or damage through negligent or wrongful acts.

Irrevocable Right

A legal entitlement or authority that cannot be revoked, altered, or undone once it has been granted or established.

License

A revocable right to use another’s property temporarily.