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Under International Financial Reporting Standards (IFRS), which cash flow statement category includes interest paid by a corporation?

AFinancing Activities Only
BInvesting Activities Only
COperating Activities Only
DOperating or Financing Activities

Explanation

* Under IFRS, interest paid can be classified as either Operating or Financing cash flow, provided it is consistently applied.
* Under US GAAP, interest paid must strictly be classified under Operating Activities.
* Interest received under IFRS can be classified as Operating or Investing.

Exam Relevance
  • Topic: Financial Accounting
  • Subtopic: Statement of Cash Flows
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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