A statement of cash flows accomplishes all of the following EXCEPT:
A) determines the ability of the company to pay dividends and interest.
B) provides information about the cash receipts and cash payments during a period.
C) determines whether revenues equal expenses.
D) predicts future cash flows.

Question

Quizplus · Accepted Answer

A statement of cash flows does not determine whether revenues equal expenses; it focuses on cash transactions, not on matching revenues with expenses.

A Statement of Cash Flows Accomplishes All of the Following