TRUE/FALSE

1.The statement of cash flows superseded the previously required sources and uses of funds statement.

2.In the statement of changes in financial position, sources of resources are defined as transaction debits

3.The cash flow statement is the statement of financial position with funds defined as cash.

4.In the sources section of the statement of changes in financial position, transactions are sub-classified into those affecting liquid assets and those affecting other accounts.

5.The statement of changes in financial position reported on changes in assets, liabilities, and owners’ equity account balances.

6.Most firms elected to define funds in the statement of changes in financial position as cash.

7.The funds flow statement included only transactions affecting fund accounts.

8.With SFAS No. 95 defining funds as cash, the FASB has moved from a position of rigid uniformity to a flexibility orientation.

9.Inclusion of a cash flow statement is mandatory.

10.The statement of financial position is a special case of the more general cash flow statement.