Which are limitations of the statement of cash flows

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Reference no: EM132940139

Problem 1: All of the following are limitations of the statement of cash flows, except:

A. financial ratios based on cash flow data are better at predicting financial distress for companies than other ratios that rely solely on accrual accounting balances

B. it provides past cash flow data, which may not be a good predictor of future cash flows

C. the direct method of determining cash flows from operating activities does not provide industry comparison

D. non-cash transactions and events while relevant to the financial affairs of the entity are excluded from the statement of cash flows.

Reference no: EM132940139

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