FASB financial accounting concepts on using estimated future cash flow information in accounting measurements identified each of the following four principles except
A)the cash flows should consider all relevant future events and uncertainties
B)the assumptions used to select interest rates should be consistent with the assumptions inherent in the estimated cash flow amounts
C)the estimated cash flows and interest rates should be free from bias and unrelated factors
D)the estimated cash flows should reflect a single most likely minimum or maximum possible amount, rather than a range of possible cash flows

Question

Quizplus · Accepted Answer

The FASB financial accounting concepts do not state that estimated future cash flows should reflect a single most likely minimum or maximum possible amount. In fact, it is recognized that there may be a range of possible outcomes, and companies must provide disclosures regarding the assumptions and uncertainties underlying their estimates. The principles listed in choices A, B, and C are all consistent with the FASB's guidance on using estimated future cash flows in accounting measurements.

FASB Financial Accounting Concepts on Using Estimated Future Cash Flow