Asked by David Plata on May 12, 2024

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Which of the following types of information was specifically identified by the FASB as being useful in assessing the amounts, timing, and uncertainty of a company's future cash flows?

A) liquidity
B) return of investment
C) financial capability
D) credit standing

FASB

Financial Accounting Standards Board; an independent organization responsible for establishing accounting and financial reporting standards in the United States.

Future Cash Flows

Future cash flows refer to the projected inflows and outflows of cash that a company expects from its operations over a future period.

Credit Standing

The assessment of a borrower's financial health and ability to repay debt, typically influenced by credit history and financial behavior.

  • Comprehend the overarching and precise targets of financial reporting in accordance with the FASB guidelines.
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Verified Answer

BA
Beatriz AlvarezMay 18, 2024
Final Answer :
A
Explanation :
The FASB has specifically identified liquidity information as being helpful in assessing a company's future cash flows. This includes information on the availability and management of cash and other liquid resources. Return on investment, financial capability, and credit standing may also be important factors to consider, but they were not specifically identified by the FASB in this context.