Managers primarily use the statement of cash flows to determine the amount of the company's assets relative to the amount of its debt.

Question

Quizplus · Accepted Answer

Managers primarily use the statement of cash flows to understand the company's sources and uses of cash, as well as to assess its ability to generate future cash flows. While the statement of cash flows may provide some insight into the company's debt and asset levels, that is not its primary purpose.

Managers Primarily Use the Statement of Cash Flows to Determine