During the most recent year, Grace paid $109,000 in interest to its lenders and $78,000 in dividends to its stockholders.
REQUIRED:
1. In which category of the statement of cash flows operating, investing, or financing should each of these amounts be shown if Grace follows U.S. GAAP? If more than one category is acceptable, indicate what the choices are.
2. In which category of the statement of cash flows operating, investing, or financing should each of these amounts be shown if Grace follows IFRS? If more than one category is acceptable, indicate what the choices are.

Question

Quizplus · Accepted Answer

The Answer of During the most recent year, Grace paid $109,000 in interest to its lenders and $78,000 in dividends to its stockholders.
REQUIRED:
1. In which category of the statement of cash flows operating, investing, or financing should each of these amounts be shown if Grace follows U.S. GAAP? If more than one category is acceptable, indicate what the choices are.
2. In which category of the statement of cash flows operating, investing, or financing should each of these amounts be shown if Grace follows IFRS? If more than one category is acceptable, indicate what the choices are.

During the Most Recent Year, Grace Paid $109,000 in Interest