The statement of cash flows is designed to fulfill all of the following purposes except: A) to predict future cash flows B) to determine the company's ability to pay dividends to shareholders C) to show the relationship of net income to changes in the company's cash D) to assess the collectibility of accounts receivable

Question

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The statement of cash flows is primarily concerned with providing information about a company's cash receipts and cash payments during a period, not directly assessing the collectibility of accounts receivable. This is more directly related to the analysis of the balance sheet and income statement.

The Statement of Cash Flows Is Designed to Fulfill All