Management should not use the statement of cash flows for which of the following purposes?
A)To determine dividend policy
B)To determine cash flow from operations
C)To determine cash flow from investing activities
D)To determine cash flow from financing activities
E)To determine the balance in accounts receivable

Question

Quizplus · Accepted Answer

The statement of cash flows does not provide information about the balance in specific accounts such as accounts receivable. It only provides information about the changes in cash and cash equivalents over a period of time. The other options listed are all appropriate uses of the statement of cash flows.

Management Should Not Use the Statement of Cash Flows for Which