Balance sheet information is useful for all of the following except to
A) compute rates of return
B) analyze cash inflows and outflows for the period
C) evaluate capital structure
D) assess future cash flows

Question

Quizplus · Accepted Answer

Balance sheet information provides information on the company's assets, liabilities, and equity at a point in time. It does not give information on cash inflows and outflows for the period, which is covered in the statement of cash flows. Therefore, option B is the correct choice as it is not useful for analyzing cash inflows and outflows for the period. Options A, C, and D are all valid uses of balance sheet information.

Balance Sheet Information Is Useful for All of the Following