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Classify interest payment or receipt as operating activity

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Problem 1: Your manager states that if they change the depreciation policy on existing plant & equipment by increasing the useful life this can reduce depreciation expense and increase income by 10%. Advise your manager whether this change is possible with reference to accrual accounting conventions.

Problem 2: How does the accountant decide whether to classify an interest payment or receipt as an operating activity?

Reference no: EM132775506

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