Financial Reporting and Analysis Q145

145Which of the following statements is least accurate regarding cash flow statements prepared under IFRS and U.S. GAAP?

A
Under U.S. GAAP, dividends paid are considered as a financing activity.
B
Under IFRS, interest paid can be reported either as an operating or a financing cash flow.
C
Under U.S. GAAP, bank overdrafts are considered as a part of cash and cash equivalents

Option : C
Explanation : Under U.S. GAAP, bank overdrafts are not considered part of cash and cash equivalent. They are classified as financing cash flows.

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