The statement of cash flows is not useful for
A) planning future investing and financing activities
B) determining a company's ability to pay its debts
C) determining a company's ability to pay dividends
D) calculating the net worth of a company

Question

Quizplus · Accepted Answer

The statement of cash flows does not provide information on the net worth or overall financial health of a company. This information is typically found on the balance sheet. However, the statement of cash flows is useful for understanding a company's cash inflows and outflows, which can inform decisions related to investing, financing, debt repayment, and dividend payments.

The Statement of Cash Flows Is Not Useful for