Choose the letter that corresponds to the answer. Since the information on the nature of expense methodis not useful in predicting future cash flows, additional6.Statement 1:Since the information on the nature of expense meuio5 Hot useful in predicting future cash flows, additionaldisclosure is required in the notes. The function of expense method does not requireadditional disclosure in the notes because the.information provided therein is useful in predictingStatement 2:future čash flows.a Only the first statement is correct.а.b.Only the second statement is correct.Both statements are correct.С.d.Neither of the statements is correct.

Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Statement 2: The function of expense method does not require additional disclosure in the notes because the information provided therein is useful in predicting future čash flows. a. Only the first statement is correct. b. Only the second statement is correct. Both statements are correct. с.

Statement 2: The function of expense method does not require additional disclosure in the notes because the information provided therein is useful in predicting future čash flows. a. Only the first statement is correct. b. Only the second statement is correct. Both statements are correct. с.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Choose the letter that corresponds to the answer.

Since the information on the nature of expense method
is not useful in predicting future cash flows, additional
6.
Statement 1:
Since the information on the nature of expense meuio
5 Hot useful in predicting future cash flows, additional
disclosure is required in the notes.

The function of expense method does not require
additional disclosure in the notes because the.
information provided therein is useful in predicting
Statement 2:
future čash flows.
a Only the first statement is correct.
а.
b.
Only the second statement is correct.
Both statements are correct.
С.
d.
Neither of the statements is correct.

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