One of the primary purposes of the cash ﬂow statement is to
A) determine the company's annual proﬁt after taxes
B) inform users of dividends declared during the year
C) segregate operating revenues from non-operating revenues
D) determine if the company is adequately managing accounts receivable and inventory

Question

Quizplus · Accepted Answer

The cash flow statement helps assess how well a company manages its cash position, including its ability to generate cash from operations, which involves managing accounts receivable and inventory.

One of the Primary Purposes of the Cash ﬂOw Statement