单选题

A company reports its interest payments on long-term debt as a financing activity under IFRS. If the company reports under U.S. GAAP, the most likely effect would be:

A、 an increase in cash flow from operations.
B、 a decrease in cash flow from investing activities.
C、 an increase in cash flow from financing activities.

【正确答案】 C

【答案解析】

Interest payments can be reported either as operating or financing cash flow under IFRS, but can only be reported as operating cash flow under U.S. GAAP. The interest payment was originally reported as financing activity under IFRS, but under U.S. GAAP, it would be an operating activity. Therefore, cash flow from financing activities would increase, and operating cash flows decrease by the same amount.