The Statement of Cash Flows Enables Financial Statement Users to Do

question 90

Multiple Choice

The statement of cash flows enables financial statement users to do all of the following except ________.

• A) assess an entity's ability to pay liabilities and dividends
• B) determine the extent to which an entity will require external financing
• C) assess the collectability of existing accounts receivable
• D) reconcile differences between net income and the associated cash receipts and payments

---

Definitions:

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.

Withdrawn

The act of pulling back or removing a statement, offer, or proposal previously put forward.

Closely Held Corporation

A corporation that does not sell stock to the general public.

Majority Shareholder

An entity or individual that owns more than half of the shares in a company, giving them significant control over the company's decisions.