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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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