The statement of financial position is useful for all of the following EXCEPT
A) assessing a company's risk.
B) evaluating a company's liquidity.
C) evaluating a company's financial flexibility.
D) determining free cash flows.

Question

Quizplus · Accepted Answer

The statement of financial position provides information about a company's assets, liabilities, and equity at a given point in time. This information can be used to assess a company's risk, evaluate its liquidity and financial flexibility, but it does not directly provide information on free cash flows, which are calculated using information from the statement of cash flows.

The Statement of Financial Position Is Useful for All of the Following