Why is the scf called a derivative statement

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Reference no: EM131529569

Question: 1. What is, the three-way classification system in the SCF more informative than the two-way source/use classification?

2. How does the source/use classification reflect the structure of double entry accounting?

3. What is the purpose of reporting noncash items in the SCF?

4. Why is the SCF called a derivative statement?

5. The chapter suggests that liquidity and flexibility data do not compose a central feature of accrual accounting. Explain why this is so.

Reference no: EM131529569

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