Analysts find the cash flow statement more helpful for spotting weakness in a company than for gauging success.

Question

Quizplus · Accepted Answer

The cash flow statement is useful for identifying potential problems or weaknesses in a company's financial operations. It can reveal whether a company is generating enough cash to meet its obligations, if there are any cash flow shortfalls, and how much cash is being invested in the business. However, it may not provide a complete picture of a company's overall financial success, as other factors such as revenue and profitability also need to be taken into account.

Analysts Find the Cash Flow Statement More Helpful for Spotting