The Statement of Cash Flows Is Not Used To

question 2

Multiple Choice

The statement of cash flows is not used to:

• A) assess the ability of an entity to generate cash.
• B) help predict future cash flows.
• C) check the accuracy of past assessments of future cash flows.
• D) indicate significant changes in asset, liability and equity accounts for the year.

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Definitions:

Conditional Statements

Logical statements that have an "if-then" structure, specifying conditions and the outcomes if those conditions are met.

Conclusions

The end part of an argument or text, summarizing the main points or deducing a final judgment.

Claim

A statement asserting something to be true, which can be factual or a belief, often used in the context of legal disputes or arguments.

Prescriptive Premise

A premise in an argument containing a value statement.