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information about cash flows can influence decision makers in important ways. which of the following questions could be answered by the statement of cash flows? (check all that apply.)
how does a company spend its cash
does the company have the resources to pursue opportunities
is the company using its assets efficiently
can the company pay its debts

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Tundexi

As information about a firm;s cash flows can influence decision makers in important ways, some of the questions that could be answered by the statement of cash flows are:

  • A. How does a company spend its cash?
  • B. Does the company have the resources to pursue opportunities?
  • D. Can the company pay its debts?

What is a statement of cash flows?

In accounting, a statement of cash flows refers to a financial statement that provides an aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources.

This statement also includes all cash outflows that pay for business activities and investments during a given period.

Read more about statement of cash flows

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