Question

The Statement of Financial Accounts Standard No. 95 (SFAS 95) states that providing a statement of cash flows is optional for public companies.

A. True
B. False

Answer 1

The Statement of Financial Accounting Standards No. 95 (SFAS 95) requires public companies to provide a statement of cash flows.

Step-by-step explanation:

The correct answer is False. According to the Statement of Financial Accounting Standards No. 95 (SFAS 95), providing a statement of cash flows is mandatory for public companies. SFAS 95 was issued by the Financial Accounting Standards Board (FASB) to provide guidance on how companies should report cash flows from operating, investing, and financing activities in their financial statements.