Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Question

Quizplus · Accepted Answer

Managers need to analyze the details of cash flows from operating, investing, and financing activities to understand the sources and uses of cash in the company, and make informed decisions about future cash management strategies. Simply looking at the net cash increase or decrease may give a misleading impression of the company's financial health.

Managers Only Use the Cash Flow Statement to Evaluate the Net