Under international accounting standards,cash paid for interest (associated with interest expense)can be shown on the statement of cash flows as an

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Quizplus · Accepted Answer

Cash paid for interest can either be considered an operating activity, as it relates to the day-to-day operations of the business, or a financing activity, as it relates to the repayment of debt. Therefore, it can be reported as either one or both on the statement of cash flows, as long as the method chosen is consistent with the company's accounting policies. Option B allows for both possibilities.

Under International Accounting Standards,cash Paid for Interest (Associated with Interest