Asked by
Sophie Naezer
on Oct 15, 2024Verified
Common uses of the statement of cash flows include all but which of the following?
A) Management prediction of future cash flows for decision making.
B) Investor assessment of cash flows before buying and selling stock.
C) Creditor evaluation of a company's ability to generate cash to cover debt.
D) Government assessment of whether the company paid the correct amount of taxes.
E) Management determination of the specific sources and uses of cash.
Statement Of Cash Flows
A financial statement showing the inflows and outflows of cash and cash equivalents over a specific period, categorizing them into operating, investing, and financing activities.
Management Prediction
Forecasts or projections made by a company's management regarding future business conditions, operational performance, or financial outcomes.
Creditor Evaluation
The process of assessing the creditworthiness of a business or individual, analyzing their ability to repay debts.
- Comprehend the meaning and objective of the cash flow statement.
- Analyze the effect of transactions on a company's cash flows and financial standing.
Verified Answer
KR
Learning Objectives
- Comprehend the meaning and objective of the cash flow statement.
- Analyze the effect of transactions on a company's cash flows and financial standing.