The statement of cash flows helps analysts evaluate whether a company has enough cash to:
A) Pay for unexpected law suits.
B) Pay for future plant expansion.
C) Make debt repayments.
D) Finance investments.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on a company's cash inflows and outflows, helping analysts assess its ability to cover unexpected expenses, future expansions, debt repayments, and investments.

The Statement of Cash Flows Helps Analysts Evaluate Whether a Company