The statement of cash flows helps analysts evaluate the:
A) Source of cash used for debt repayments.
B) Source of cash used for plant expansion.
C) Differences between income and net operating cash flow.
D) Source of cash used to finance investing activities.
E) All of these.

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on all three types of activities (operating, investing, and financing) and how they affect the change in cash balance. This allows analysts to evaluate the source of cash used for debt repayments and plant expansion, as well as compare income to net operating cash flow.

The Statement of Cash Flows Helps Analysts Evaluate The