Surf Company follows IFRS for its external financial reporting. The following amounts were available at December 31, 2015: $\begin{array}{lr}
\text { Interest received } & \$ 25,000 \
\text { Dividends received } & 16,000
\end{array}$ Under IFRS, what is the maximum amount that could be reported for cash provided by operating activities for Surf Company for the year ended December 31, 2015?
A) $-0-
B) $25,000
C) $16,000
D) $41,000

Question

Quizplus · Accepted Answer

Under IFRS, both interest received and dividends received can be classified either as operating activities or as investing activities. Therefore, the maximum amount that could be reported for cash provided by operating activities would include both amounts, totaling $41,000.

Surf Company Follows IFRS for Its External Financial Reporting Interest received $25,000 Dividends received 16,000\begin{array}{lr}\text { Interest received } & \$ 25,000 \\\text { Dividends received } & 16,000\end{array} Interest received Dividends received ​$25,00016,000​

Surf Company Follows IFRS for Its External Financial Reporting $\begin{array}{lr}\text { Interest received } & \$ 25,000 \\\text { Dividends received } & 16,000\end{array}$