CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

In the statement of cash flows, a company is allowed to classify interest paid ______.
A. only in the financing section under both IFRS and U.S. GAAP
B. in either the operating or financing section under U.S. GAAP
C. in either the operating or financing section under IFRS
Explanation: U.S. GAAP requires that interest paid be classified as an operating cash flow; IFRS allows interest paid to be classified as either an operating or financing activity.

User Contributed Comments 3

User Comment
tomalot Handy memory aid: GAAPOPIFRSOPFIN
ascruggs92 ^not at all
shumwaya everything only has 1 classification in GAAP, multiple classifications means IFRS
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