A statement of cash flows is helpful in:
A)evaluating past performance.
B)analyzing the earnings of the company.
C)predicting future cash flows.
D)Both A and C.

Question

Quizplus · Accepted Answer

A statement of cash flows provides information on the company's past cash inflows and outflows, allowing for an evaluation of past performance. It also includes information on the company's current cash position, which can be helpful in predicting future cash flows. However, it does not directly provide information on earnings.

A Statement of Cash Flows Is Helpful In