The information in a cash flow statement will help users assess all of the following EXCEPT
A) the company's ability to generate future cash flows.
B) the company's ability to pay dividends and meet obligations.
C) the company's ability to turn over its accounts receivable.
D) the reasons for the difference between profit and cash provided or used by operating activities.

Question

Quizplus · Accepted Answer

The cash flow statement provides information about a company's cash receipts and cash payments during an accounting period, helping users assess the company's ability to generate future cash flows, pay dividends, meet obligations, and understand the reasons for differences between profit and cash from operating activities. It does not directly provide information about the company's ability to turn over its accounts receivable, which is more closely related to the analysis of the balance sheet and income statement.

The Information in a Cash Flow Statement Will Help Users