Common uses of the statement of cash flows include all but which of the following?
A) Investor assessment of cash flows before buying and selling stock.
B) Management prediction of future cash flows for decision making.
C) Management determination of the specific sources and uses of cash.
D) Creditor evaluation of a company's ability to generate cash to cover debt.
E) Government assessment of whether company is able to pay taxes as they become due.

Question

Quizplus · Accepted Answer

The statement of cash flows is not typically used by the government to assess a company's ability to pay taxes. It is primarily used by investors, management, and creditors to evaluate cash flow, predict future cash flows, and determine cash sources and uses.

Common Uses of the Statement of Cash Flows Include All