Conceptual Framework, Standards, Standard Setting, and Presentation of FS #3

Question 1

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

Answer 1

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

Question 2

The SEC was created under which Act?

Answer 2

The 1934 Securities Exchange Act.

Question 3

Income is constructively received and included in gross income if

Answer 3

• It is readily available to the taxpayer, and

- Actual receipt is not subject to substantial limitations or restrictions