The information presented on the statement of cash flows enables users to
A)assess the company's ability to generate cash flows from its core operations.
B)evaluate the cash flows the company has been able to obtain from investors and creditors.
C)assess the extent to which the company has invested cash to replace or add revenue-generating capital assets.
D)all of the above

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the company's cash flows from operating, investing, and financing activities. As a result, users can assess the company's ability to generate cash flows from its core operations (choice A), evaluate the cash flows the company has been able to obtain from investors and creditors (choice B), and assess the extent to which the company has invested cash to replace or add revenue-generating capital assets (choice C). Therefore, choice D is the best answer.

The Information Presented on the Statement of Cash Flows Enables