Question

A statement of cash flows helps answer all of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) What explains the changes in the cash account

Answer 1

Hie your question is incomplete

However A statement of cash flows help with the following:

1. Formulating an opinion regarding the risk profile of an entity by paying particular attention to the ability of the entity to:

a.pay interest and dividends;

b. make capital repayments on borrowed funds; and

c. access the appropriate sources of financing to finance the activities of the entity;

2. Forecasting the cash that will probably be available in the future to finance expansions;

3. Determining which sources of cash have been used to finance operating and investing activities;

4.Evaluating whether the entity is capable of generating sufficient cash flows from operating activities for a part thereof to be ploughed back into the entity;

5.Evaluating the timing and certainty of generated cash in order to assess the ability of the entity to adapt to changing circumstances;

Step-by-step explanation: