__________predicts how changes in a business will affect its ability to take in more money than it pays out.
A) Cash flow analysis
B) A balance sheet
C) Ratio analysis
D) An income statement

Question

Quizplus · Accepted Answer

Cash flow analysis examines the inflows and outflows of cash for a business and identifies how changes in the business will affect its ability to generate more cash than it pays out. A balance sheet shows the financial position of a company at a specific point in time, while ratio analysis examines relationships between different financial statements. An income statement shows a company's revenues, expenses, and profits over a period of time, but does not necessarily provide insight into cash flow.

__________Predicts How Changes in a Business Will Affect Its Ability