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A statement of cash flows is intended to help users of financial statements A. Evaluate a firm’s economic resources and obligations. B. Determine a firm’s components of income from operations. C. Determine whether insiders have sold or purchased the firm’s stock. D. Evaluate a firm’s liquidity, solvency, and financial flexibility.

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sandlee09

Answer:

D.

Explanation:

A statement of cash flows is a financial statement that allows a firm to see how certain adjustments in balance sheet accounts as well as periodic income affects the firms cash and assets. This is intended to help users of financial statements evaluate a firm's liquidity, solvency, and financial flexibility based on the data provided.

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