Managers only use the statement of cash flows to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Question

Quizplus · Accepted Answer

Managers use the statement of cash flows not only to evaluate the overall net cash increase or decrease, but also to analyze the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. This information is essential for making informed decisions regarding the company's financial health and future growth prospects.

Managers Only Use the Statement of Cash Flows to Evaluate