Homework SourseT15 Multiple Choice A Did we borrow any money B Why did our
T-15 Multiple Choice
A. Did we borrow any money?
B. Why did our cash balance increase or decrease?
C. What is the current level of inventory?
D. Did we issue any dividends?
| 15. A Statement of Cash Flows can be used to answer a variety of questions. Which of the following would this statement not be likely to answer? |
Solution
Statement of cash flows does not reflect the level of inventory. It only shows the change in inventory from one period to another period.
Rest of all the items are reflected in cash flow statement.
Correct choiceL C
