IFRS GAAP Requirement That a Statement of Cash Flows Be

question 1

Multiple Choice

IFRS GAAP requirement that a statement of cash flows be reported (in one of two standard formats) by all business entities is logical because

• A) Accrual accounting is no longer valid in today's fast paced economy.
• B) Accrual accounting and cash accounting provide different information.
• C) Cash accounting is useless in a world where most transactions involve credit.
• D) The value of a business entity is best described by its cash position after liquidation.

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Definitions:

Acetyl Chloride

A colorless, volatile compound used as an acylating agent in organic synthesis, characterized by the presence of an acetyl group attached to a chloride.

Cyclopentanol

A cyclic alcohol, characterized by a five-membered ring structure bearing a single hydroxyl group.

Major Organic Product

The predominant substance produced in an organic chemical reaction, often the target molecule of synthetic interest.

Inorganic Ester

A compound formed by the replacement of the hydrogen of an acid by a metal or by an organic radical in non-carbon-based acids.