USGAAP Requires That the Statement of Cash Flows Explain the Changes

question 89

Multiple Choice

U.S.GAAP requires that the statement of cash flows explain the changes in the firm's

• A)cash and cash equivalents during the accounting period.
• B)resources and obligations during the accounting period.
• C)components of income from operations during the accounting period.
• D)accounts receivable and accounts payable during the accounting period.
• E)All of the above are required.

---

Definitions:

Issuance Costs

Expenses related to the distribution and sale of securities, including legal, accounting, and underwriter fees.

Effective Interest Amortization

Effective Interest Amortization is a method of calculating the amortization of a bond's premium or discount, taking into account the time value of money.

Interest Accrual

The accumulation of interest on a loan or investment over time, which has been earned but not yet paid.