Question

In regards to the typical classification of interest and dividends using U.S. GAAP and IFRS, which...

In regards to the typical classification of interest and dividends using U.S. GAAP and IFRS, which of the following statements is correct:

a.Under IFRS, interest received is an operating activity.

b.Under U.S. GAAP, dividends received is an investing activity.

c.Under IFRS, interest paid is a financing activity.

d.Under U.S. GAAP, dividends paid is an operating activity.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is a. Under IFRS, interest received is an operating activity.

Under IFRS Interest received may be classified as cash flows from either operating or investing activities but not financing activity. Interest received will be classified under operating if entity is a financial institution.

Interest paid may be classified as cash flows from either operating or financing activities. Interest paid will be classified under operating if entity is a financial institution.

So as per above both option a and c are correct if entity is other entity and not financial institution. But if it is a financial institution then only option a is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the difference between ASPE and IFRS for the SCF? Multiple Choice Dividends paid must...
What is the difference between ASPE and IFRS for the SCF? Multiple Choice Dividends paid must be classified as a financing activity. Interest received and paid, and dividends received must be classified in operating activities. There is no choice of alternate classification All of these are differences between ASPE and IFRS for the SCF. Information regarding cash flow for interest, and cash paid for income tax, is accomplished through a disclosure note.
Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do...
Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do you find most interesting? If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?
Can someone please check to see if I answered these correctly? 1) Which is a source...
Can someone please check to see if I answered these correctly? 1) Which is a source of cash? a.            increase in inventory b.            decrease in bonds payable c.             decrease in accounts payable d.            decrease in accounts receivable e.            increase in prepaid assets 2) In the Statement of Cash Flows, U.S. GAAP views cash received in the form of interest and dividends as coming from _____. a.            investing activities b.            operating activities c.             financing activities d.            exchange activities e.            economic activities...
Select from the option list provided the appropriate balance sheet classification for each asset below. Each...
Select from the option list provided the appropriate balance sheet classification for each asset below. Each choice may be used once, more than once, or not at all. Purchase of available-for-sale securities    Purchase of land 3. Dividends distributed to shareholders 4. Equipment acquired through capital lease Sale of trading securities 3. Dividends distributed to shareholders 7. Equipment acquired through purchase 8. Dividends received 9. Interest paid 10. Interest received 11. Retirements of bond principal . Issuance of preferred shares...
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of...
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S.  While there are many similarities between the two systems, there are also some significant differences.  After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would. what is a differences that exist...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS sets out broad and general principles that accountants should follow when preparing financial statements. B. IFRS offers simplicity but also possibly more leeway for accounting malpractice than does GAAP. C. In 2008, the Securities and Exchange Commission (SEC) announced its plan to convert U.S. companies from GAAP to IFRS. D. IFRS leaves LESS room for discretion than GAAP does. 2. Rogue Corp. has sales...
2.   Which of the following is the typical sequencing of activities on the statement of cash...
2.   Which of the following is the typical sequencing of activities on the statement of cash flows? a. Operating, investing, and financing b. Operating, financing, and investing c. Investing, operating, and financing d. Investing, financing, and operating
Multiple Choices Interest expense in GAAP financial statements is computed based on: The coupon rate times...
Multiple Choices Interest expense in GAAP financial statements is computed based on: The coupon rate times the carrying value of the debt The coupon rate times the face value of the debt The effective rate times the carrying value of the debt The effective rate times the face value of the debt Coopers Inc. issued $10,000,000 of 10-year bonds on 1/1/2016 for $10,858,432. The bonds pay interest semi-annually. A journal entry was recorded for the first interest payment on June...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ?...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ? How widespread is the adoption of IFRS around the world? ? What is the possibility of the Securities and Exchange Commission substituting IFRS for GAAP? ? What are the advantages of converting to IFRS? ? What could be the disadvantages of converting to IFRS? ? What is the difference between convergence and adoption? ? When comparing IFRS and GAAP, what are some overall key...
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect...
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A's income statement reveals depreciation expense of $10,000. Cash Flows From Operating Activities–Add to Net Income Cash Flows From Operating Activities–Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash Entity A prepares its Statement of Cash Flows in accordance with...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT