A Statement of Cash Flows is designed to help investors, creditors, and others to project a company's future cash flows.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on a company's past cash flows and can help investors, creditors, and others to project future cash flows. It helps in analyzing a company's liquidity, cash position, and ability to generate cash for future operations and investments.

A Statement of Cash Flows Is Designed to Help Investors