Answer: either the operating or financing section under IFRS.

## Explanation Under IFRS (International Financial Reporting Standards), interest paid can be classified in **either the operating or financing section** of the statement of cash flows. This provides flexibility in presentation. Under US GAAP (Generally Accepted Accounting Principles), interest paid must be classified in the **operating section** only. Therefore: - **Option A is correct**: Under IFRS, interest paid can be in either operating or financing section. - **Option B is incorrect**: Under US GAAP, interest paid must be in the operating section, not either operating or financing. - **Option C is incorrect**: Interest is not only in the financing section under both standards; under IFRS it can be in either, and under US GAAP it must be in operating. **Key differences between IFRS and US GAAP for cash flow classification:** - **Interest paid**: IFRS (operating or financing) vs. US GAAP (operating only) - **Interest received**: IFRS (operating or investing) vs. US GAAP (operating only) - **Dividends paid**: IFRS (operating or financing) vs. US GAAP (financing only) - **Dividends received**: IFRS (operating or investing) vs. US GAAP (operating only)

Author: LeetQuiz .