What does the statement of cash flows allow management to assess?
A)efficiency in earning profit.
B)efficiency in controlling expenses.
C)efficiency in managing cash flows.
D)efficiency in managing industrial relations.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflow and outflow of cash in a business for a specific period, which helps management assess their efficiency in managing cash flows. It does not provide information about the earning of profits, controlling expenses, or managing industrial relations.

What Does the Statement of Cash Flows Allow Management to Assess