The Information in a Statement of Cash Flows Will Not

question 79

Multiple Choice

The information in a statement of cash flows will not help investors to assess the entity's ability to

• A) generate future cash flows.
• B) obtain favorable borrowing terms at a bank.
• C) pay dividends.
• D) pay its obligations when they become due.

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Definitions:

Current

A directional movement of water, which can be caused by temperature, salinity differences, wind, or tidal forces in the ocean.

Sediment

Particles or fragments of rocks, minerals, or organic materials that have been transported and deposited by wind, water, or ice.

Standing Body

Refers to a body of water, such as a lake or pond, that is contained in a basin and does not flow like rivers or streams.

Moving Water

Water that is in motion, flowing naturally in streams, rivers, or artificially through conduits, often utilized for energy production or irrigation.