The cash flow statement helps inform the reader about all of the following activities except:
A) the business's ability to generate cash to meet its past obligations
B) the business's ability to generate positive cash flows
C) stock splits and stock dividends
D) differences between net income and cash flows from operations

Question

Quizplus · Accepted Answer

The cash flow statement provides information about the cash inflows and outflows of a business, including its ability to generate cash to meet its past obligations and generate positive cash flows. It also highlights the differences between net income and cash flows from operations. However, it does not provide information about stock splits and stock dividends, which are typically disclosed in the notes to the financial statements.

The Cash Flow Statement Helps Inform the Reader About All