All of the Following Statements Related to Reporting Cash Flows

question 1

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.

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Definitions:

Intact Rule

A principle or regulation that remains whole, undamaged, or unchanged, ensuring consistency and reliability in its application or enforcement.

Societies

Groups of individuals living together in more or less ordered communities, with shared laws, traditions, and values.

Employees

Individuals who are hired to perform tasks or services for an employer in return for compensation.

Company's Employees

Company's employees are individuals who work for a specific business or organization, contributing to its operations, services, and goals.