An investor is interested in assessing the effectiveness of a company's cash management. Where will the investor look to evaluate this?
A)Statement of cash flows
B)Income statement
C)Balance sheet
D)Company's bank statements

Question

Quizplus · Accepted Answer

The statement of cash flows is the best choice for evaluating a company's cash management as it provides information on the company's cash inflows and outflows, as well as how the company is managing its cash reserves. The income statement and balance sheet provide information on the company's profitability and financial position, respectively, but do not provide a detailed analysis of cash management. The company's bank statements may provide some information, but they are not comprehensive enough to fully evaluate the effectiveness of the company's cash management.

An Investor Is Interested in Assessing the Effectiveness of a Company's