The statement of cash flows helps analysts to evaluate a company's ability to ________.
A)pay amounts owed
B)invest in long-term assets
C)collect accounts receivable
D)all of these

Question

Quizplus · Accepted Answer

The statement of cash flows helps analysts to evaluate a company's ability to pay amounts owed, invest in long-term assets, and collect accounts receivable by providing information on the company's operating, investing, and financing activities that have an impact on its cash and cash equivalents. By analyzing the statement of cash flows, analysts can determine whether a company has enough cash on hand to meet its financial obligations and pursue new investment opportunities.

The Statement of Cash Flows Helps Analysts to Evaluate a Company's