All of the following can be determined from a statement of cash flows EXCEPT the company's ability to ________.
A) pay its bills
B) manage production
C) buy new inventory
D) afford salary obligations
E) make investments in the business

Question

Quizplus · Accepted Answer

The statement of cash flows mainly focuses on the cash inflows and outflows of a company, including operating activities, investing activities, and financing activities. It provides information about the company's ability to pay its bills, afford salary obligations, buy new inventory, and make investments in the business. However, it does not provide information about the company's ability to manage production, which is usually disclosed in the company's operational report or management discussion and analysis section of the financial statements.

All of the Following Can Be Determined from a Statement