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Donny Sulastiawan
on Nov 18, 2024

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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

Net Worth

The difference between the total assets and total liabilities of an individual or company, indicating financial health.

Financing Activities

Transactions involving changes in equity and long-term liabilities, reflecting how a company raises capital and repays investors.

Investing Activities

Refers to the spending of capital on assets with the expectation of generating future returns, such as purchasing property, equipment, or other companies.

  • Understand the utility of the statement of cash flows in financial analysis.
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Karenique AbercrombieNov 18, 2024
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