SFAS No. 95 (see FASB ASC 230) requires companies to prepare a statement of cash flows. Required:

Question:

SFAS No. 95 (see FASB ASC 230) requires companies to prepare a statement of cash flows. Required: Describe how the FASB’s Conceptual Framework eventually led to the requirement that companies issue statements of cash flows.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting Theory and Analysis Text and Cases

ISBN: 978-1118582794

11th edition

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey

See More Books

Question Posted: Dec 17, 2014 10:22 AM

See More Questions

Prepare a statement of cash flows for Abrahams Manufacturing Company for the year ended December 31, 2012. Interpret your results. Abrahams Manufacturing Company Income Statement for the Year Ended...
Prepare a statement of cash flows of Cedar Company using the indirect method Additional Data: 1. Net income for the year amounted to $104,000. 2. Cash dividends were paid amounting to 4% of par...
To prepare a statement of cash flows for Golf Champion Store, you examined the companys accounts, noting the following: Purchased equipment, $20,000, and issued a promissory note in full payment....
Elgin Company has recently introduced budgeting as an integral part of its corporate planning process. An inexperienced member of the accounting staff was given the assignment of constructing a...
Suppose that a particular type of plant has a median growing height of 20 inches in a specified time period when the best plant food currently on the market is used as directed. A developer of a new...
Abnormal earnings grow this always equal to growth of (change in) residual earnings. Correct?
A Sampling Distribution for Gender in the Rock and Roll Hall of Fame Exercise 3.37 tells us that 47 of the 303 inductees to the Rock and Roll Hall of Fame have been female or have included female...
Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,400,000 and $1,700,000. Compute...
Wantaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected to increase from $471 million to $5.81 million as a result Wontaby finances short-term assets at the bank at a cost...
If you were asking to complete an organizational analysis of Modify, what conclusions would you reach regarding the firms management prowess and resource sufficiency at the time the firm launched and...
The statement of cash flows is intended to provide information about the investing, financing, and operating activities of an enterprise during an accounting period. In a statement of cash flows,...
According to SFAC No. 1, financial statements should provide information that is useful for investors decision making. Paragraph 37 of SFAC No. 1 states that financial reporting should provide...
1. An airline offers daily flights between Chicago and Denver. The total monthly cost C (in millions of dollars) of these flights can be modeled by C = 0.2x + 1 where x is the number of passengers...
-Explain the OS design principles in terms of CPU Scheduling, Memory Management, and Deadlocks. -What are the CPU Scheduling, Memory Management algorithms, and Deadlock strategy used by the OS? -What...
An archer shoots an arrow parallel to the ground from a height of 1.9 meters. The arrow flies at 100 meters per second. How long after releasing the arrow will the arrow hit the ground? Make your...
China has a fixed exchange rate system. During COVID-19, many European countries output production had significantly decreased due to lockdown rules. Thus, China was facing a temporary increase in...
Apex Health Insurance has a retention limit of $ 50,000 for a single policy in the excess of loss risk reinsurance treaty.. Apex Health enters into an excess-of-loss per risk treaty with Geneva Re....
Why is the Commercial Bank of Australia v Amadio (1983) 151 CLR 447 an important case in contract law? According to Australian Legal Review.
What is the maximum stop rating of a camera lens having a focal length of +10 cm and a diameter of 2.0 cm? If the correct exposure at f/6 is (1/90) s, what exposure is needed when the diaphragm...
Consider the setup in Problem 16. Show that the relative speed of the ball and the point of contact on the stick is the same before and immediately after the collision. (This result is analogous to...
Which of the following combinations will cause the rate of transcription to increase? a. A repressor plus an inducer b. A repressor plus a corepressor c. An activator plus an inhibitor d. None of the...
The SEC has issued regulations requiring the disclosure of foreign activities when certain financial statement elements exceed 10 percent of the corresponding financial statement amount. Find, cite,...
The FASB ASC addresses disclosure requirements for common interest realty associations. Find, cite, and copy the FASB ASC paragraphs that define common interest realty associations. Additionally,...
The FASB ASC addresses disclosure requirements for common interest realty associations. Find, cite, and copy the FASB ASC paragraphs that define common interest realty associations. Additionally,...
ABC partnership is dissolving.assume the noncash assets ( axxounts recwivable with a carrying amount of 4 5 0 0 0 and equupment with a cost of 6 5 0 0 0 and accumulated depreciation of 3 5 0 0 0 )...
A taxpayer expenses out $ 1 5 0 , 0 0 0 of tangible property under IRC Section 1 7 9 when they file their Federal return. The taxpayer will need to apportion the Section 1 7 9 between California...
The purpose of this part is to provide you with a better understanding of the origins of the Codification. For this part, you should stay in the Codification, clicking on the tab Other Sources ( on...

SFAS No. 95 (see FASB ASC 230) requires companies to prepare a statement of cash flows. Required:

Question:

Step by Step Answer:

The format required by SFAS No 95 for the presentation of the statement of cash flows evolved over a number of years In 1980 the FASB issued a discussion memorandum entitled Reporting Funds Flows Liqu...View the full answer

Financial Accounting Theory and Analysis Text and Cases

Students also viewed these Accounting questions