[jm962011]

Studying for FAR and I have some notes I took before my Becker expired. Now, I may of written it down wrong but I have:

“primary purpose: provide relevant info about an enterprise’s ability to generate future positive net cash flows”

I have Roger now because my Becker expired and I liked his teaching and his book says:

“the primary purpose is to provide detailed information about an entity’s cash inflows and outflows”

So, how do I answer this MCQ?

The primary purpose of a statement of cash flows is to provide relevant information about:

a. Differences between net income and associated cash receipts and disbursements

b. An enterprise’s ability to generate future positive net cash flows

c. The receipts and disbursements of an enterprise during a period

d. An enterprise’s ability to meet cash operating needs

I picked C based on my Roger studies and I went to write this down in my notes, which is a combination of Becker and Roger when I saw the Becker version of the primary purpose.

[jm962011]

so i may have answered my own questions (and I'm thinking my Becker note might be wrong… can someone with Becker confirm? I also wrote under that “why did cash change so we can assess if it's good or bad news… read it in peter's voice… gawd i love accents)

https://www.fasb.org/cs/BlobServer?blobkey=id&blobwhere=1175820920892&blobheader=application/pdf&blobcol=urldata&blobtable=MungoBlobs

pg 5

Purpose of a Statement of Cash Flows

4.

The primary purpose of a statement of cash flows is to provide relevant information about the cash receipts and cash payments of an enterprise during a period.

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