The FASB Is Concerned with the Accurate Portrayal of Liquidity

question 116

True/False

The FASB is concerned with the accurate portrayal of liquidity because users evaluate future cash flows in their decision making practices.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period that comes from transactions, other events, and circumstances from sources not directly related to investments by or distributions to equity shareholders.

Unrealized Changes

Refers to changes in the value of assets or liabilities that have occurred but have not been realized through a transaction.

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares.

Comprehensive Income

This is a measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.