The information in a statement of cash flows will not help investors to assess the entity's ability to

Question

Quizplus · Accepted Answer

The statement of cash flows only provides information about the entity's past and current cash flows. It does not directly relate to the entity's ability to obtain favorable borrowing terms at a bank. However, a strong cash flow history may indirectly contribute to the entity's ability to negotiate favorable borrowing terms.

The Information in a Statement of Cash Flows Will Not