Management would not use the statement of cash flows to
A)assess the liquidity of the business.
B)determine dividend policy.
C)evaluate the effects of major policy decisions involving investments and financing.
D)determine the financial position of the company.

Question

Quizplus · Accepted Answer

The statement of cash flows is primarily used to assess the liquidity and solvency of a business, evaluate its ability to change cash flows in future circumstances, and determine the ability to affect the amounts and timing of cash flows to adapt to changing circumstances and opportunities. It does not provide a comprehensive overview of the company's financial position, which is the purpose of the balance sheet.

Management Would Not Use the Statement of Cash Flows to