46) Cash flow information is used to predict future cash flows and to assess liquidity, the ability of a firm to pay dividends and obligations and for other purposes. Answer: TRUE OR FALSE 48) The main objectives in preparing cash flow statement is to analyze transactions to identify all cash flows, reconcile items and non-cash transactions. Answer: TRUE OR FALSE 49) Operating flows are related to the main activities of the business and are connected to the earnings process. Answer: TRUE OR FALSE 50) Financing flows describe the sources of debt and equity financing and repayments of liabilities and equities. Answer: TRUE OR FALSE