Question

What does the Cash Flow Statement provide users of financial statements with?

a.

It provides information on the Profit and Loss Account.

b.

It provides a basis to assess the ability of the firm to generate cash and cash equivalent.

c.

It provides information on the Balance Sheet.

d.

It provides a basis to assess the firm's long-term investments.

Answer: (b).It provides a basis to assess the ability of the firm to generate cash and cash equivalent. Explanation:The Cash Flow Statement provides users of financial statements with a basis to assess the ability of the firm to generate cash and cash equivalent and the needs of the firm to utilize those cash flows.

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Q. What does the Cash Flow Statement provide users of financial statements with?

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