Which of the following statements is true concerning how interest paid on debt is classified on the cash flow statement for U.S.GAAP and International Financial Reporting Standards IFRS)?
A)It is a cash from operations for both.
B)It is a cash from financing activities from both.
C)It may be classified as either a cash from operations or a cash from financing activities for U.S.GAAP.
D)It may be classified as either a cash from operations or a cash from financing activities for IFRS.

Question

Quizplus · Accepted Answer

Under IFRS, interest paid can be classified as either operating or financing activities, while under U.S. GAAP, it is classified as an operating activity.

Which of the Following Statements Is True Concerning How Interest