The statement of financial position contributes to financial reporting by providing a basis for all of the following except
A)computing rates of return.
B)evaluating the capital structure of the enterprise.
C)determining the increase in cash due to operations.
D)assessing the liquidity and financial flexibility of the enterprise.

Question

Quizplus · Accepted Answer

The statement of financial position, or balance sheet, does not directly show the increase in cash due to operations; this is typically derived from the statement of cash flows.

The Statement of Financial Position Contributes to Financial Reporting by Providing