answer question 1-10

1. How does the all-inclusive or all-resources approach to the SCFP with funds defined as working capital differ from the older funds flow statement? 2. SFAS No. 95 allows a choice between the direct and the indirect method for calcu- lating the operations section of the SCF. Do you think this is a case of flexibility? Explain. 3. What is the "fineness" issue raised by Nurnberg and Largay relative to accounting for hedging transactions in SFAS No. 104? 4. Does the "fineness" issue arise in the handling of capitalized interest costs (SFAS No. 34) relative to the treatment of this item in SFAS No. 95? Explain. 5. What advantages do you see for classifying interest expense as an investing cash flow rather than an operating cash flow? What is the advantage of classifying it as an operating cash flow? What is the advantage of classifying it as a financing cash flow? 6. Explain how cash flow data complement the income statement and balance sheet. 7. What is the "quality of income" concept, and how does cash flow reporting relate to it? 8. What attribute is being measured in the SCF, and how well is representational faithfulness achieved? Compare this to when funds are defined as working capital. 9. Why is the three-way classification system in the SCF more informative than the two-way source/use classification? 10. How does the source/use classification reflect the structure of double-entry accounting? accounting 9. Why is the three-way classification system in the SCF more informative than the two-way source/use classification? How does the source/use classification reflect the structure of double-entry accounting