QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

54. Which of the following statements is most accurate regarding cash flow statements

prepared under IFRS and U.S. GAAP?

A. Under U.S. GAAP, bank overdrafts should be classified as a financing cash flow.

B. Under IFRS, interest paid can be reported either as an operating or an investing cash

flow.

C. Both the direct and indirect formats of cash flow statements are allowed under IFRS

and U.S. GAAP, but indirect is encouraged under IFRS only.

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