The statement of cash flows cannot help address questions such as:
A)How is the increase in investments financed?
B)What is the source of cash for new plant assets?
C)How much cash is generated from or used in operations?
D)How much of the company's revenues have been retained as profit?
E)Why is cash flow from operations different from income?

Question

Quizplus · Accepted Answer

The statement of cash flows provides information about cash inflows and outflows, but does not provide information about the retention of profits. This information can be found in the income statement or statement of retained earnings.

The Statement of Cash Flows Cannot Help Address Questions Such