The statement of cash flows may assist in determining the ability of an entity to:
A) generate cash flows.
B) obtain internal finance.
C) meet its financial commitments to customers.
D) generate cash flows and meet its financial commitments to customers.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about an entity's cash inflows and outflows, helping assess its ability to generate cash flows.

The Statement of Cash Flows May Assist in Determining the Ability