Which of the following is decision that requires significant judgment?
A) Whether management will disclose significant accounting policies impacting the statement of cash flows
B) The amount of cash paid for income taxes
C) Whether the entity should deduct the amortization of a bond premium when using the indirect method
D) How certain cash flows (such as interest and dividends) should be classified on the statement of cash flows

Question

Quizplus · Accepted Answer

Classifying cash flows like interest and dividends on the statement of cash flows requires significant judgment due to varying accounting standards and interpretations.

Which of the Following Is Decision That Requires Significant Judgment