ith respect to the statement of cash flows A.) Both the FASB and the GASB encourage entities to use the direct method B.) The GASB, but not the FASB, requires entities to use the direct method C.) The FASB, but not the GASB, requires entities to use the direct method D.) Both the FASB and the GASB require entities to use the direct method

ith respect to the statement of cash flows A.) Both the FASB and the GASB encourage entities to use the direct method B.) The GASB, but not the FASB, requires entities to use the direct method C.) The FASB, but not the GASB, requires entities to use the direct method D.) Both the FASB and the GASB require entities to use the direct method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following is true regarding government-wide financial statements?a. The government-wide statements include a statement of net position, a statement of activities, and a statement of cash flows.b. The government-wide statements include a statement of net position and a statement of activities, but not a statement of cash flows.c. The government-wide statements include a balance sheet, an income statement, and a statement of cash flows.d. None of the above
In a cash flow statement which one of the following would appear as an inflow of cash? O The profit on sale of a fixed asset. A repayment of debenture loans. An issue of shares at a premium, An increase in stock during the year.
Describe the methodology, similarities, and the differences between the direct and indirect methods of preparing the statement of cash flows Be sure to explain the major cash flow categories of operating, investing, and financing activities, and provide at least two examples of each activity. Then, describe the relationship between the beginning cash balance and the ending cash balance for the current period. Lastly, explain the reasons why one method (direct or indirect) is most often used by corporations to report cash flows.
Which of the following is true regarding the government-wide financial statements?a. The government-wide financial statement includes a statement of cash flows.b. The government-wide financial statements are prepared on the financial resources measurement focus for governmental activities and the economic resources measurement focus for business-type activities.c. The government-wide financial statement includes a statement of net position.d. Infrastructure assets must be depreciated on the statement of activities.
The acquisition of capital assets by a special revenue fund would be shown as: O a. long term asset O b. short term asset (supplies) O c. expenditure O d. cannot have capital acquisitions in governmental funds Oe. expense
Explain the accounting for funds received by an organization acting as an agent, a trustee, or an intermediary, rather than as a donor or donee. What might be the reasoning for the differences?
Essay: (Answer must be technical, with examples if necessary.) When initially recognizing the cash surrender value, what is the reason behind the allocation between deducting from insurance expense and crediting to retained earnings? What application of matching principle concept is used?
Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.
Which one of the following fund accounting required to prepare a statement of cash flow? a. Proprietary fund b. None of the options c. Fiduciary fund d. General fund
Explain the modified accrual foundation for accounting. In the context of governmental funds, why does it appear in the financial reports?
The acquisition of capital assets by an internal service fund would be shown as: O a expense O b. long term asset Oc expenditure Od. short term asset (supplies) O e. cannot have capital acquisitions in govermmental funds
(47) The FASB and IASB prefer the direct method of reporting operating cash flows on the statement of cash flows. True False