List and discuss three ways in which the statement of cash flows helps financial statement users
What will be an ideal response
1. Predict future cash flows—Past cash receipts and payments help predict future cash flows.
2. Evaluate management decisions—Wise investment decisions help the business prosper, while unwise decisions cause the business to have problems. Cash flow information can help investors and creditors to evaluate managers' decisions.
3. Predict ability to pay debts and dividends—Lenders want to know whether they will collect on their loans. Stockholders want dividends on their investments. The statement of cash flows helps make these predictions.
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Which of the following organizations is responsible for the creation and governance of accounting standards in the United States?
A) Financial Accounting Standards Board B) Institute of Management Accountants C) American Institute of Certified Public Accountants D) Securities and Exchange Commission
According to your text, which of the following is probably the most used and most recognized form of branding?
A) brand name B) trade character C) patent D) logo E) copyright