The primary purpose of the statement of cash flows is to provide information about
A)the financial position of the company.
B)the cash inflows and outflows of the company.
C)the investing and financing activities of the company.
D)the profitability of the company.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about the cash inflows and outflows of the company, which is important for understanding the liquidity of the company and its ability to pay its obligations. It does not provide information about the financial position, investing and financing activities, or profitability of the company, although these may be indirectly inferred from the cash flow information.

The Primary Purpose of the Statement of Cash Flows Is