close solutoin list

Researching Accounting Standards: Dissenting Views and the Statement of Cash Flows The preparation of cash flow statements is required by generally accepted accounting principles. This accounting standard was initially adopted by a four-to-three vote of the FASB. Several members of the Board took exception to various aspects of the statement including (1) the classification of interest and dividends received and interest paid as cash flows from Operations and (2) the use of the indirect method. Why did dissenting members of the FASB take exception to the indirect method? (See the section following paragraph 34 of the full text of Statement No. 95 .) How did the FASB justify permitting use of the indirect method? (See paragraphs 108, 109, and 119 of Statement No. 95 .)

BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter
Section
Chapter 11, Problem 64.2C
Textbook Problem

Researching Accounting Standards: Dissenting Views and the Statement of Cash Flows

The preparation of cash flow statements is required by generally accepted accounting principles. This accounting standard was initially adopted by a four-to-three vote of the FASB. Several members of the Board took exception to various aspects of the statement including (1) the classification of interest and dividends received and interest paid as cash flows from Operations and (2) the use of the indirect method.

Why did dissenting members of the FASB take exception to the indirect method? (See the section following paragraph 34 of the full text of Statement No. 95.) How did the FASB justify permitting use of the indirect method? (See paragraphs 108, 109, and 119 of Statement No. 95.)

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 11 Solutions

Cornerstones of Financial Accounting
Show all chapter solutions
Ch. 11 - Where do the components of the changes in retained...Ch. 11 - How is the sale of equipment at a loss reported on...Ch. 11 - What does an increase in inventory imply? How...Ch. 11 - What does an increase in accounts payable imply?...Ch. 11 - Does the fact that the cash flow from operating...Ch. 11 - What are the most common sources of cash inflows...Ch. 11 - What are the most common cash outflows related to...Ch. 11 - What balance sheet account changes might you...Ch. 11 - From what source(s) should most companies secure...Ch. 11 - Why should companies attempt to secure cash for...Ch. 11 - When using the direct method, which items usually...Ch. 11 - Describe how to compute each of the cash inflows...Ch. 11 - Why is depreciation expense not generally reported...Ch. 11 - Why do companies often use a spreadsheet to...Ch. 11 - Which of the following is not a use of the...Ch. 11 - Which of the following would be classified as a...Ch. 11 - Which of the following is an example of a cash...Ch. 11 - Which of the following is an example of a cash...Ch. 11 - Which of the following is true? a. An increase in...Ch. 11 - Which of the following statements is true? a. Net...Ch. 11 - Mullinix Inc. reported the following information:...Ch. 11 - Which item is added to net income when computing...Ch. 11 - Refer to the information for Cornett Company...Ch. 11 - Refer to the information for Cornett Company...Ch. 11 - Chasse Building Supply Inc. reported net cash...Ch. 11 - Smoltz Company reported the following information...Ch. 11 - Romo Inc. reported the following information for...Ch. 11 - Classification of Cash Flows Stanfield Inc....Ch. 11 - Classification of Cash Flows Patel Company...Ch. 11 - Classification of Cash Flows Refer to the...Ch. 11 - Analyzing Changes in Balance Sheet Accounts Refer...Ch. 11 - Determining Net Cash Flow from Operating...Ch. 11 - Determining Net Cash Flow from Operating...Ch. 11 - Determining Net Cash Flow from Investing...Ch. 11 - Determining Net Cash Flow from Financing...Ch. 11 - Analyzing the Statement of Cash Flows Rollins Inc....Ch. 11 - Cash Receipts from Customers Singleton Inc. had...Ch. 11 - Cash Payments to Suppliers Blackmon Company...Ch. 11 - Cash Payments for Operating Expenses Luna Inc....Ch. 11 - Uses of the Statement of Cash Flows Listed below...Ch. 11 - Classification of Cash Flows Foster Company...Ch. 11 - Analyzing Balance Sheet Accounts A review of the...Ch. 11 - Determining Net Cash Flow from Operating...Ch. 11 - Determining Net Cash Flow from Investing...Ch. 11 - Determining Net Cash Flow from Financing...Ch. 11 - Analyzing the Statement of Cash Flows Manning...Ch. 11 - Determining Net Cash Flow from Operating...Ch. 11 - Classification of Cash Flows A review of the...Ch. 11 - Classification of Cash Flows The following are...Ch. 11 - Analyzing Changes in Balance Sheet Accounts A...Ch. 11 - Analyzing the Accounts Casey Company uses a...Ch. 11 - Analyzing the Accounts The controller for Summit...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Determining Cash Flows from Investing Activities...Ch. 11 - Determining Cash Flows 1from Investing Activities...Ch. 11 - Determining Cash Flows from Financing Activities...Ch. 11 - Determining Cash Flows from Financing Activities...Ch. 11 - Partial Statement of Cash Flows Service Company...Ch. 11 - Analyzing the Statement of Cash Flows Information...Ch. 11 - Preparing the Statement of Cash Flows The...Ch. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Classifying and Analyzing Business Activities CTT...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Classification of Cash Flows Rolling Meadows...Ch. 11 - Preparing a Statement of Cash Flows Erie Company...Ch. 11 - Preparing a Statement of Cash Flows Monon Cable...Ch. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Classifying and Analyzing Business Activities...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Classification of Cash Flows Fannin Company is a...Ch. 11 - Preparing a Statement of Cash Flows Volusia...Ch. 11 - Preparing a Statement of Cash Flows SDPS Inc....Ch. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - The Statement of Cash Flows and Credit Analysis...Ch. 11 - The Statement of Cash Flows and Credit Analysis...Ch. 11 - The Statement of Cash Flows and Credit Analysis...Ch. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Preparing a Prospective Statement of Cash Flows...Ch. 11 - Preparing a Prospective Statement of Cash Flows...Ch. 11 - Preparing a Prospective Statement of Cash Flows...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Researching Accounting Standards: Dissenting Views...Ch. 11 - Researching Accounting Standards: Dissenting Views...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Research and Analysis Using the Annual Report...Ch. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...Ch. 11 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What are information processing activities?

Accounting Information Systems

How are inflation and unemployment related in the short run?

Principles of Economics (MindTap Course List)

What is a relational diagram? Give an example.

Database Systems: Design, Implementation, & Management

How does a network-based IDPS differ from a host-based IDPS?

Principles of Information Security (MindTap Course List)

Imagine the water level in the tank described in Problem 9.38 rises at a rate of 0.1 in/s. Knowing the diameter...

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

List three safety precautions to be observed when using a hacksaw.

Precision Machining Technology (MindTap Course List)

What are control relays?

Electric Motor Control

Faulty ATM When using an ATM to deposit a check, the ATM misreads the amount of the check and credits your acco...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)

EXPECTED RETURNS Suppose you won the lottery and had two options: (1) receiving 0.5 million or (2) taking a gam...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is a base year?

Macroeconomics