The statement of cash flows provides external users the ability to analyze the information required to access a company's risk, liquidity, financial flexibility, and operating capability.

Question

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The statement of cash flows provides information that helps external users assess a company's ability to meet its financial obligations, manage its cash flows effectively, and invest in future growth opportunities. This information is crucial for understanding a company's overall risk, liquidity, financial flexibility, and operating capability. Therefore, statement of cash flow is an important tool for financial analysis.

The Statement of Cash Flows Provides External Users the Ability