The information in a statement of cash flows helps investors and creditors assess the company's ability to pay dividends and meet obligations.

Question

Quizplus · Accepted Answer

A statement of cash flows shows the sources and uses of cash during a specific period, which helps investors and creditors determine the company's ability to generate cash, pay dividends, and meet financial obligations. Therefore, the statement of cash flows is a crucial financial statement that provides valuable information for decision-making.

The Information in a Statement of Cash Flows Helps Investors