Question

Which of the following statement is false?
a. Cash flow statement is helpful in the formation of policies.
b. Cash flow statement is useful for external analysis.
c. Cash flow statement is helpful in estimating future cash flow.

• A. Both (a) and (b)
• B. Both (a) and (c)
• C. Both (b) and (c)
• D. None of the above

Answer 1

The correct option is D None of the above

Cash flow statement helps users to assess the impact of the activities on the financial position of an enterprise and so on its cash and cash equivalents.