{"id":45871,"date":"2024-04-15T22:04:14","date_gmt":"2024-04-15T22:04:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45871"},"modified":"2024-04-15T22:04:14","modified_gmt":"2024-04-15T22:04:14","slug":"cash-flow-statement-is-not-helpful-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/","title":{"rendered":"Cash flow statement is not helpful in:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Planning the repayment of loans and replacement of fixed assets&#8221; option2=&#8221;Projecting the profits of the business in the long run&#8221; option3=&#8221;Detecting the causes of poor cash position inspite of substantial profits&#8221; option4=&#8221;Evaluation of cash position of a firm&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Projecting the profits of the business in the long run<\/strong><\/p>\n<p>A cash flow statement is a financial statement that shows how much cash a company has coming in and going out over a period of time. It is not a profit and loss statement, which shows how much revenue a company has earned and how much expenses it has incurred. Therefore, a cash flow statement cannot be used to project the profits of a business in the long run.<\/p>\n<p>A cash flow statement can be used to:<\/p>\n<ul>\n<li>Evaluate the cash position of a firm.<\/li>\n<li>Determine the sources and uses of cash.<\/li>\n<li>Identify the causes of cash shortages or surpluses.<\/li>\n<li>Plan for future cash needs.<\/li>\n<li>Make investment decisions.<\/li>\n<li>Analyze the financial performance of a company.<\/li>\n<\/ul>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Planning the repayment of loans and replacement of fixed assets. A cash flow statement can be used to determine how much cash a company will need to repay loans and replace fixed assets. This information can be used to plan for future cash needs.<\/li>\n<li>Option B: Projecting the profits of the business in the long run. A cash flow statement cannot be used to project the profits of a business in the long run. This is because a cash flow statement only shows how much cash a company has coming in and going out over a period of time. It does not show how much revenue a company has earned or how much expenses it has incurred.<\/li>\n<li>Option C: Detecting the causes of poor cash position inspite of substantial profits. A cash flow statement can be used to identify the causes of cash shortages or surpluses. This information can be used to improve a company&#8217;s cash management practices.<\/li>\n<li>Option D: Evaluation of cash position of a firm. A cash flow statement is a financial statement that shows how much cash a company has coming in and going out over a period of time. It can be used to evaluate the cash position of a firm.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Planning the repayment of loans and replacement of fixed assets&#8221; option2=&#8221;Projecting the profits of the business in the long run&#8221; option3=&#8221;Detecting the causes of poor cash position inspite of substantial profits&#8221; option4=&#8221;Evaluation of cash position of a firm&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-45871","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cash flow statement is not helpful in:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash flow statement is not helpful in:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Planning the repayment of loans and replacement of fixed assets&#8221; 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option2=&#8221;Projecting the profits of the business in the long run&#8221; option3=&#8221;Detecting the causes of poor cash position inspite of substantial profits&#8221; option4=&#8221;Evaluation of cash position of a firm&#8221; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:04:14+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/","url":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/","name":"Cash flow statement is not helpful in:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:04:14+00:00","dateModified":"2024-04-15T22:04:14+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-flow-statement-is-not-helpful-in\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"Cash flow statement is not helpful in:"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/45871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=45871"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/45871\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=45871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=45871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=45871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}