Question

What is the purpose of the Cash Flow Statement in the context of the insurance industry?

a.

To assess the ability of the firm to generate revenue

b.

To evaluate the company's investment decisions

c.

To analyze the profitability of the insurance business

d.

To assess the ability of the firm to generate cash and cash equivalent and the needs to utilize those cash flows

Answer: (d).To assess the ability of the firm to generate cash and cash equivalent and the needs to utilize those cash flows Explanation:In the insurance industry, the Cash Flow Statement is important to assess the ability of the firm to generate cash and cash equivalents and the needs to utilize those cash flows, considering the nature of the risk-taking business and the intangible product it deals with.

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Q. What is the purpose of the Cash Flow Statement in the context of the insurance industry?

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