It is unethical,and considered a form of manipulation,to classify a cash flow as an investing or financing activity,when it really is an operating activity.

Question

Quizplus · Accepted Answer

The classification of cash flows as investing, financing, or operating activities must be done in accordance with the international accounting standards. Intentionally misclassifying a cash flow in order to manipulate financial statements or present a desirable picture to stakeholders is considered unethical and can be a violation of accounting standards and principles.

It Is Unethical,and Considered a Form of Manipulation,to Classify a Cash