Question

What issues pertain to the comparability of the cash flow statement across firms?

What issues pertain to the comparability of the cash flow statement across firms?

Homework Answers

Answer #1

Answer :-

  • The extent of leases treated as working leases versus capital leases changes significantly crosswise over firms .
  • GAAP requires PC programming advancement organizations to cost all product improvement costs until the point when the product achieves innovative achievability, GAAP does not have any criteria for deciding mechanical attainability which consequently permits organizations adaptability regarding this assurance .
  • Companies moving their records receivable at year-end are misshaping their money streams in the present year in respect to their rivals that don't move their receivables at year-end .

note :-

If you have any doubt please ask me in comment box , i will try to clarify your doubt . but please don't give thumb down.

THank you.

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