One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility?

Question

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Financial flexibility refers to the ability of a firm to respond and adapt to financial adversity and unexpected needs and opportunities. Statement of cash flows can help users evaluate a firm's financial flexibility by providing information about the sources and uses of cash during a specific period, which can indicate how easily the firm can adapt to changes in its financial situation.

One of the Benefits of the Statement of Cash Flows