Question

The statement of cash flows helps meet one of the objectives of financial reporting, which is to assess all of the following except the

a. amount of future cash flows.
b. source of future cash flows.
c. timing of future cash flows.
d. uncertainty of future cash flows.

Answer 1

The statement of cash flows helps assess the amount, source, and timing of future cash flows but does not directly address their uncertainty.

Step-by-step explanation:

The statement of cash flows is a financial report that helps assess several aspects of a company's financial health by showing how cash is generated and used over a period of time. It helps to evaluate the amount of future cash flows, the source of future cash flows, and the timing of future cash flows. However, it does not directly address the uncertainty of future cash flows, as this involves more than just historical cash data and requires additional information and analysis.