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Basic Question 6 of 11
Which one of the following must be disclosed separately on the statement of cash flows prepared under the indirect approach?
B. Interest paid
C. Dividends received
D. Income tax paid on a gain from the sale of assets
A. Interest received
B. Interest paid
C. Dividends received
D. Income tax paid on a gain from the sale of assets
User Contributed Comments 5
| User | Comment |
|---|---|
| surob | Why? |
| surjoy | Even IT paid also should be report for indirect approach. |
| thekid | I Don't understand - can someone please explain. |
| gill15 | Just straight definition of how its presented. Gaap does not require that int and taxes be disclosed as separate line it CF statement but does require the amounts provided in supplemental note. |
| pk84 | IFRS requires Interest & Taxes paid to be disclosed separately. |
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Learning Outcome Statements
describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data
CFA® 2024 Level I Curriculum, Volume 2, Module 4.