The Statement of Cash Flows Is Not Useful for

question 147

Multiple Choice

The statement of cash flows is not useful for

• A) planning future investing and financing activities
• B) determining a company's ability to pay its debts
• C) determining a company's ability to pay dividends
• D) calculating the net worth of a company

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Definitions:

Cash Generating Units

A segment of a company's operations that independently generates cash flows from its activities.

Carrying Amount

The amount at which an asset is recognized in the balance sheet after deducting any accumulated depreciation (amortization) and accumulated impairment losses.

Value In Use

The value today of the cash flows that are expected to come from an asset or a revenue-producing entity in the future.