The statement of cash flows helps analysts evaluate the:

Select one:

a. Source of cash used for debt repayments.

b. Source of cash used for plant expansion.

c. Differences between profit and net operating cash flow.

d. Source of cash used to finance investing activities.

e. All of these.

Expert Solution

Answer : option ( E )

All the above

Statement of cash flow:

The statement of cash flows reports a business's cash receipts, payments, and change in cash for the period. It shows why cash increased or decreased during the period. The cash-flow statement aids prediction of future cash flows and evaluation of management decisions. Cash also includes cash equivalents such as liquid short-term investments.The cash-flow statement reports operating activities, investing activities, and financing activities. Operating activities create revenues and expenses in the entity's major line of business. Investing activities affect the long-term assets. Financing activities obtain the cash needed to launch and sustain the business. Each section of the statement includes cash receipts and cash payments andconcludes with a net cash increase or decrease. In addition, noncash investing and financing activities are reported in an accompanying schedule.

ekkarill92 answered 2 years ago

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