"Cash Is King" for all businesses You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. Which of the following is true for the statement of cash flows? It reflects revenues when earned. O It reflects cash generated and used during the reporting period.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4. Cash flows
"Cash Is King" for all businesses
You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the
company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing
new debt or selling its assets.
Which of the following is true for the statement of cash flows?
It reflects revenues when earned.
It reflects cash generated and used during the reporting period.
Transcribed Image Text:S 4. Cash flows "Cash Is King" for all businesses You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. Which of the following is true for the statement of cash flows? It reflects revenues when earned. It reflects cash generated and used during the reporting period.
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