Chartered Financial Analyst Level 1

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Answer: IFRS only.

Under **US GAAP**, cash dividends paid to stockholders are classified as a **financing activity**. However, **IFRS** allows companies to classify dividends as either an **operating activity** or a **financing activity**. Therefore, the correct answer is **A (IFRS only)**, as US GAAP does not permit this classification.

Author: LeetQuiz Editorial Team

Quick Answer

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Answer: IFRS only.

Author: LeetQuiz Editorial Team

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Under which accounting standards can cash dividends paid be classified as an operating activity on the statement of cash flows?

Exam-Like

IFRS only.

53.3%

US GAAP only.

26.7%

Both IFRS and US GAAP.

20.0%