Accounting Question
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The explanation for 65:
Any transaction that involves an inflow or outflow of cash could only be reported in the statement of cash flows. In the given transaction there is neither an inflow nor outflow of cash. Therefore, the transaction should not be reported in the statement of cash flows.
The explanation for 66:
The global event factors are not one of the critical variables used to determine an investment's future earnings potential. Economy-wide factors, industry variables, and individual company factors impact the future earnings prospects of an investment and the determination as to whether or not to make an investment in that particular company.
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