Investors use the statement of cash flows in order to determine whether a company has positive cash flows from operating activities.

Question

Quizplus · Accepted Answer

The statement of cash flows shows the sources and uses of cash for a company during a specific period of time, including the cash flows from operating activities. Investors can analyze the statement of cash flows to determine whether a company has generated positive or negative cash flows from its main operations.

Investors Use the Statement of Cash Flows in Order to Determine