The Statement of Cash Flows Is Designed to Fulfill All

question 94

Multiple Choice

The statement of cash flows is designed to fulfill all of the following purposes except:

• A) to predict future cash flows
• B) to determine the company's ability to pay dividends to shareholders
• C) to show the relationship of net income to changes in the company's cash
• D) to assess the collectibility of accounts receivable

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Definitions:

Role

The function or part played by a person or thing in a particular situation or context.

Interconnected Tasks

Tasks that are linked or related in such a way that the completion of one can affect the execution of others.

Behaviors

Observable actions or reactions of individuals, often in response to their environment or internal states.

Expect

To regard something as likely to happen or believe that something or someone will arrive or occur.