The statement of cash flows is considered to be a good indicator of current cash inflows and outflows.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the sources and uses of cash during a specific period, allowing users to determine the amount and timing of cash inflows and outflows. This information is crucial for assessing a company's liquidity and ability to meet its obligations. Therefore, the statement of cash flows is considered a good indicator of current cash inflows and outflows.

The Statement of Cash Flows Is Considered to Be a Good