Which statement is correct according to IAS 7?
A)An enterprise must classify the receipt of interest and dividends received as an operating activity.
B)An enterprise must classify the receipt of interest and dividends received as an investing activity.
C)An enterprise may choose to report the payment of interest and dividends as either an operating or a financing activity.
D)An enterprise must choose to report the payment of interest and dividends as an operating activity.

Question

Quizplus · Accepted Answer

IAS 7 allows flexibility in classifying interest and dividends paid as either operating or financing activities, depending on the nature of the entity's operations.

Which Statement Is Correct According to IAS 7