Financial Statement Reporting: Statement of Cash Flows and Other Disclosures
In addition to the income statement and balance sheet, the CPA must be conversant with:
Statement of Cash Flows
According to ASC 230-10, Statement of Cash Flows—Overall (FAS-95, Statement of Cash Flows), a statement of cash flows is required in the annual report. In addition, separate reporting is mandated for certain information applicable to noncash investments and financing transactions.
What is the purpose of the statement of cash flows?
The statement of cash flows:
What is a cash equivalent?
A cash equivalent is a short-term, very liquid investment satisfying these two criteria:
How are cash equivalents disclosed?
The company's policy for ...