Under IFRS, interest expense would be classified as:
A. Either operating cash flow or financing cash flow.
B. Operating cash flow only.
C. Financing cash flow only.
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A companys quick ratio is 1.2. If inventory were purchased for cash, the:
A. Numerator would decrease more than the denominator,resulting in a lower quick ratio.
B. Denominator would decrease more than the numerator,resulting in a higher current ratio.
C. Numerator and denominator would decrease proportionally,leaving the current ratio unchanged.
The write-off of obsolete equipment would be classified as:
A. Operating cash flow.
B. Investing cash flow.
C. No cash flow impact.
A companys current ratio is 1.9. If some of the accounts payable are paid off from the cash account, the:
A. Numerator would decrease by a greater percentage than the denominator,resulting in a lower current ratio.
B. Denominator would decrease by a greater percentage than the numerator,resulting in a higher current ratio.
C. Numerator and denominator would decrease proportionally,leaving the current ratio unchanged.
For a nonfinancial firm, are depreciation expense and interest expense included or excluded from operating expenses in the income statement？
Depreciation expense Interest expenseFor a nonfinancial firm, are depreciation expense and interest expense included or excluded from operating expenses in the income statement？
Depreciation expense Interest expense
A. Included Included
B. Included Excluded
C. Excluded Included
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