Chartered Financial Analyst Level 1

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Answer: IFRS only

Under **US GAAP**, interest payments are classified as an operating cash flow. However, **IFRS** allows companies to classify interest payments as either an operating or financing cash flow. Therefore, the correct answer is **A (IFRS only)**, as US GAAP does not permit this classification for interest payments.

Author: LeetQuiz Editorial Team

Quick Answer

Answer-first summary for fast verification

Answer: IFRS only

Author: LeetQuiz Editorial Team

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Under which accounting standards can interest payments be classified as a financing cash flow on the statement of cash flows?

Exam-Like

IFRS only

43.8%

US GAAP only

12.5%

Both IFRS and US GAAP

43.8%