In the future, it appears likely that
A) the IASB will not allow companies to use the direct approach to the statement of cash flows.
B) the income statement and statement of financial position (balance sheet) will have headings of operating, investing, and financing, much like the statement of cash flows.
C) cash and cash equivalents will be combined in a single line item.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The trend in financial reporting is towards greater consistency and standardization. As such, it is likely that in the future, the income statement and statement of financial position will have headings of operating, investing, and financing to match the statement of cash flows. This will create greater consistency in the presentation of financial information across different companies and industries.

In the Future, It Appears Likely That