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 outflows for interest expense to be classified as financing activities.
C) U.S. GAAP requires cash flows from interest revenue and dividend revenue be classified as operating activities.
D) IFRS permits classification of interest expense under operating or financing activities.
E) IFRS permits classification of interest revenue and dividend revenue under operating or investing activities.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, cash outflows for interest expense are classified as operating activities, not financing activities as stated in option B. Options A, C, D, and E are true statements regarding reporting cash flows from operating activities under U.S. GAAP and IFRS.

All of the Following Statements Related to Reporting Cash Flows