5 One of the purposes of the statement of cash flows is to A

5) One of the purposes of the statement of cash flows is to A) determine the operating income of a business B) to calculate inventory turnover C) evaluate the level of debt and leverage of a company D) predict the ability of a company to pay debts and dividends

Solution

The correct option is A

--------------------------------------------------------------------------------------------------------------------------

Cash flow statement is prepared to find the amount of cash receipts and cash disbursement from operating, financing and investing activities.

--------------------------------------------------------------------------------------------------------------------------

Hope that helps.

Feel free to comment if you need further assistance J