CHAPTER 8 QUIZ 31 TO 35 31. The current cost method of inflation accounting adjusts statements by using the consumer price index. 32. Inflation adjusted financial statements may be shown as supplements to the historical cost financial statements 33. FASB 85 requires that the statement of cash flows be divided into three sections: cash flows from operations, investments, and financing 34. FASB 95 requires that the statement of cash flows be divided into three sections: cash flows from operations, investments, and financing 35. Industry comparisons allow an analyst to separate quality companies from losers.
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