The statement of cash flows is least likely to help external users to assess
A)a company's ability to generate positive future cash flows
B)the amount of a company's future accrual-based sales revenue
C)a company's ability to meet its obligations and pay dividends
D)a company's need for external financing

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about a company's cash inflows and outflows and is useful in assessing a company's ability to generate positive future cash flows, ability to meet its obligations, need for external financing, and ability to pay dividends. However, the statement of cash flows does not provide information on the amount of a company's future accrual-based sales revenue. That information can be found in the income statement and the balance sheet.

The Statement of Cash Flows Is Least Likely to Help