Interest payments, either as part of a coupon payment or to creditors, are always considered which type of cash flow?
A) Operating.
B) Financing.
C) Investing.
The correct answer is A: Any type of interest payment is always going to be considered an operating cash flow.
So does Schweser assume no IFRS or am I totally missing it? If the question was framed as "Under US GAAP" the answer would be correct as under US GAAP it is always OCF. However under IFRS interest paid can be operating or financing cash flow...right??作者: FVPV 时间: 2011-7-13 16:32
I, too, noticed that most of Schweser's questions assumed GAAP if not stated. However, we need to assume IFRS instead for the exams.
