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The statement of cash flows is useful to an analyst for which of the following reasons: A. Focusing on net income can be misleading if
The statement of cash flows is useful to an analyst for which of the following reasons:
A.
Focusing on net income can be misleading if a company has a healthy profit, but cannot translate the profit into cash.
B.
The statement of cash flows reveals why a company was able to generate a profit.
C.
It is the only source in financial statements for learning about cash generation.
D.
Both (a) and (b).
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