Which of the following statements about classification choices is correct?
A. GAAP classifies interest received as either an operating or investing activity, but IFRS requires it to be classified as an investing activity.
B. GAAP allows interest paid to be classified as either an operating or financing activity, but IFRS requires that it be classified as a financing activity.
C. GAAP classifies cash dividends paid as a financing activity, but IFRS allows them to be classified as either an operating or financing activity.
D. GAAP classifies cash dividends received as an investing activity, but IFRS allows them to be classified as either an operating or investing activity.
Answer: C
You might also like to view...
An example of an unmanageable question during negotiation is a
A. close-out question. B. directive question. C. cool question. D. window question.
The fourth step in the analyzing and recording process is to transfer (or post) entries from the journal to the ________.
Fill in the blank(s) with the appropriate word(s).
The World Wide Web consists of computers that support a standard set of rules for the exchange of information called File Transfer Protocol (FTP).
Answer the following statement true (T) or false (F)
Which of the following is FALSE concerning bonds?
A) Subordinated debentures are riskier than unsubordinated debentures. B) Debentures are secured by assets other than real estate. C) The indenture spells out the obligations of the bond issuer. D) Mortgage bonds are secured by assets such as real estate.