A statement of cash flows allows a financial analyst to determine

Question

Quizplus · Accepted Answer

A statement of cash flows provides valuable information related to cash inflows and outflows during a specific period, allowing a financial analyst to determine whether a cash dividend is affordable, how increases in asset accounts have been financed, and whether long-term assets are being financed with long-term or short-term financing. Therefore, all of the other options are correct.

A Statement of Cash Flows Allows a Financial Analyst to Determine