The statement of cash flows enables financial statement users to do all of the following except ________.
A) assess an entity's ability to pay liabilities and dividends
B) determine the extent to which an entity will require external financing
C) assess the collectability of existing accounts receivable
D) reconcile differences between net income and the associated cash receipts and payments

Question

Quizplus · Accepted Answer

The statement of cash flows does not provide information specifically about the collectability of accounts receivable; it focuses on cash inflows and outflows.

The Statement of Cash Flows Enables Financial Statement Users to Do