Which of the following is a purpose for the statement of cash flows?

Question

Quizplus · Accepted Answer

The statement of cash flows helps to determine the ability of a company to pay dividends to stockholders and interest and principal to creditors. It provides information about the company's inflow and outflow of cash and helps investors and creditors make decisions about the financial health and stability of the company. The other options are incorrect as evaluating board of directors' decisions and predicting management's future decisions are not primary purposes of the statement of cash flows, and reporting earnings per share is typically done through the income statement.

Which of the Following Is a Purpose for the Statement