The statement of cash flows cannot help address questions such as: Select one: a. How is the increase in investments financed? b. What is the source of cash for new plant assets? c. How much cash is generated from or used in operations? d. How much of the company's revenues have been retained as profit? e. Why is cash flow from operations different from income?

Respuesta :

Answer: d. How much of the company's revenues have been retained as profit?

Explanation:

The cash flow statement is chiefly concerned with how much actual cash the company has received vs how much that it has spent and it finds this out placing cash transactions under three sections being the Operating, Investing and Financing activities.

The cashflow statement cannot help answer questions such as how much of revenue will be retained as profit because the profit sometimes is not all cash. The statement that will tell how much is retained as profit will be the Income Statement.