Investors and creditors would find the statement of cash flows least useful in assessing
A)financial position at a point in time.
B)need for additional financing.
C)ability to pay dividends and liabilities.
D)ability to generate positive future cash flows.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about cash inflows and outflows during a period, but it does not provide information on financial position at a point in time. This information is typically found in the balance sheet. However, the statement of cash flows is useful in assessing the need for additional financing, ability to pay dividends and liabilities, and ability to generate positive future cash flows.

Investors and Creditors Would Find the Statement of Cash Flows