Since investors use net income to value the firm,cash flow becomes a secondary consideration simply because cash is for operation only.

If the entity has a discontinued operation, then it must also calculate and disclose the:

A) basic earnings per share ratio only for the discontinued operation in the statement of profit or loss and other comprehensive income.
B) diluted earnings per share ratio only for the discontinued operation in the statement of profit or loss and other comprehensive income.
C) basic and diluted earnings per share ratios for the discontinued operation in the statement of profit or loss and other comprehensive income.
D) basic and diluted earnings per share ratios for the discontinued operation in the statement of profit or loss and other comprehensive income only if the discontinued operation contributed a profit in the current reporting period.

The statement of cash flows is a required statement that must be prepared along with an income statement balance sheet and retained earnings statement.

The longer a credit account goes uncollected, the less likely the small business owner will receive the money owed to him/her.

Understating ending inventory understates both current and total assets.

Referring to a production possibilities curve and the goods being compared,depict the economic event.Millions of immigrants came to the United States in the second half of the 19th century to work on the transcontinental railroad (capital goods vs.consumer goods) .

A) A movement from a point inside the curve to a point on or near the curve
B) A movement from a point on or near the curve to a point inside the curve
C) A shift in the entire curve to the right (outward)
D) A shift in the entire curve to the left (inward)
E) A movement along the curve