Week 9 DQ1&2

Week 9, DQ 1: “Cash Flow Reporting”

Please respond to the following:

 

Given the complexities related to preparing and interpreting the statement of cash flow, evaluate the current requirement under GAAP and IFRS, indicating improvements that you would make to each method’s requirement to better serve the users of the information. Provide a rationale for your changes.

 

Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows, detailing how the distortion can impact the decisions made by financial statement users. Suggest how these errors may be minimized

 

 

Week 9, DQ 2: “Use of Cash Flows Statements”

 

Please respond to the following:

Assess what information may be revealed about the sustainability of a company by review and analysis of a company’s statement of cash flows that may not be revealed in the balance sheet or income statement. Provide support for your rationale.

 

Create an argument indicating that the statement of cash flows contains the most valuable information related to a company’s performance for users of financial statement information. Provide support for your argument