The statement of cash flows provides answers to all of the following questions except a. where did the cash come from during the period? b. what was the cash used for during the period? c. d what is the impact of inflation on the cash balance at the end of the year? what was the change in the cash balance during the period? 2 One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility. Which of the following explanations is a description of financial flexibility? a. The nearness to cash of assets and liabilities. b. The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities. c. The firm's ability to pay its debts as they mature. d. The firm's ability to invest in a number of projects with different objectives and costs. Liabilities are a. any accounts having credit balances after closing entries are made. b. deferred credits that are recognized and measured in conformity with generally accepted accounting principles. cobligations to transfer ownership shares to other entities in the future. d. obligations arising from past transactions and payable in assets or services in the future.