NO.PZ2024030503000144
问题如下：
Question On the statement of cash flows, interest paid should be classified as:选项：
A.a financing cash flow only. B.an operating cash flow only. C.either a financing or an operating cash flow.解释：
Solution-
Incorrect because IFRS allow companies to classify interest expense as either an operating activity or a financing activity. This is the treatment of dividends paid under US GAAP. US GAAP classify dividends paid to stockholders as a financing activity.
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Incorrect because IFRS allow companies to classify interest expense as either an operating activity or a financing activity. This is the treatment of interest paid under US GAAP. US GAAP classify interest expense as an operating activity, even though the principal amount of the debt issued is classified as a financing activity.
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Correct because IFRS allow more flexibility in the reporting of such items as interest paid. IFRS allow companies to classify interest expense as either an operating activity or a financing activity.
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Solution
- Incorrect because IFRS allow companies to classify interest expense as either an operating activity or a financing activity. This is the treatment of dividends paid under US GAAP. US GAAP classify dividends paid to stockholders as a financing activity.
- Incorrect because IFRS allow companies to classify interest expense as either an operating activity or a financing activity. This is the treatment of interest paid under US GAAP. US GAAP classify interest expense as an operating activity, even though the principal amount of the debt issued is classified as a financing activity.
- Correct because IFRS allow more flexibility in the reporting of such items as interest paid. IFRS allow companies to classify interest expense as either an operating activity or a financing activity.
Analyzing Statements of Cash Flows I
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