Question
The FASB stresses that the primary objective of financial reporting is to provide information useful to investors and creditors in assessing the amount, timing and
The FASB stresses that the primary objective of financial reporting is to provide information useful to investors and creditors in assessing the amount, timing and uncertainty of future net cash flows. The FASB contends that:
A.users pay attention to firms accounting earnings because this accrual measure of periodic firm performance improves their ability to forecast future cash flows.
B.users pay attention to managements estimates of free cash flows because this information improves their ability to forecast future cash flows.
C.current cash flows outperform current earnings in predicting future cash flows.
D.information about current cash receipts and payments is the best indicator for this task.
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