Current GAAP for preparing the statement of cash flows using the direct method requires cash flows from "interest paid" and "interest received" to be shown as operating activities.

Question

Quizplus · Accepted Answer

Under the direct method of preparing the statement of cash flows, interest paid and interest received are both shown as operating activities. This is in compliance with current GAAP (Generally Accepted Accounting Principles) for preparing the statement of cash flows.

Current GAAP for Preparing the Statement of Cash Flows Using