Questions from General Accounting

Q: SFAS No. 95 allows a choice between the direct and the

SFAS No. 95 allows a choice between the direct and the indirect method for calculating the operations section of the SCF. Do you think this is a case of flexibility? Explain.

Q: Why is it that postulates stemming from the economic and political climates

Why is it that postulates stemming from the economic and political climates as well as the customs and viewpoints of the business community would not serve as a good foundation for deducing a set of a...

Q: Does the “fineness” issue arise relative to the handling of

Does the “fineness” issue arise relative to the handling of capitalized interest costs (SFAS No. 34) relative to the treatment of this item in SFAS No. 95? Explain.

Q: What is the “fineness” issue raised by Nurnberg and Largay

What is the “fineness” issue raised by Nurnberg and Largay relative to accounting for hedging transactions in SFAS No. 104?

Q: What types of costs present matching problems, how are they dealt

What types of costs present matching problems, how are they dealt with, and what are some examples of such costs?

Q: Explain how cash flow data complement the income statement and balance sheet

Explain how cash flow data complement the income statement and balance sheet.

Q: What is the “quality of income” concept, and how

What is the “quality of income” concept, and how does cash flow reporting relate to it?

Q: What attribute is being measured in the SCF and how well is

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.

Q: Why is the three-way classification system in the SCF more

Why is the three-way classification system in the SCF more informative than the two way source/use classification?

Q: How does the source/use classification reflect the structure of double

How does the source/use classification reflect the structure of double-entry accounting?