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NEW QUESTION: 1
The management of ABC Corporation is analyzing the financial statements of XYZ Corporation because ABC is strongly considering purchasing a block of XYZ ordinary shares that would give ABC significant influence over XYZ. Which financial statement should ABC primarily use to assess the amounts, timing, and certainty of future cash flows of XYZ Company?
A. Income statement.
B. Balance sheet.
C. Statement of cash flows.
D. Statement of changes in equity.
Answer: C
Explanation:
A statement of cash flows provides information about the cash receipts and cash payments of an enterprise during a period. This information helps investors, creditors, and other users to assess the enterprise's ability to generate cash and cash equivalents and the needs of the enterprise to use those cash flows. Historical cash flow data indicate the amount, timing, and certainty of future cash flows. It is also a means of verifying past cash flow assessments and of determining the relationship between profits and net cash flows and the effects of changing price.

NEW QUESTION: 2

A. Option A
B. Option C
C. Option D
D. Option B
Answer: B

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NEW QUESTION: 4

A. Option B
B. Option A
C. Option C
D. Option E
E. Option D
Answer: A
Explanation:
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