What is a concern with allowing presentation choice in the SCF?

Multiple Choice

Financial statements may not be comparable to competitors and analysts will have to proceed with caution when benchmarking.

Management might pick classifications to portray a particular impression of operating cash flows, or other key reporting metrics.

All of these are concerns with allowing presentation choices in the SCF.

Management should base its decision for classifying interest and dividends on whether or not the payment is conceptually an operating item, or if it is more appropriately presented as investing or financing.