Why are financial statement users interested in the statement of cash flows?
A)It is the easiest financial statement to evaluate.
B)It provides information about an important company resource.
C)It is the first statement that is presented to users.
D)It helps users decide whether assets such as office equipment should be replaced.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's cash inflows and outflows, which is a critical resource for assessing liquidity, financial flexibility, and overall financial health.

Why Are Financial Statement Users Interested in the Statement of Cash