Answer the following statements true (T) or false (F)

1. Investors and management use the statement of cash flows to evaluate a firm's profitability.
2. The statement of cash flows is the link between the accrual-based income statement and the cash reported on the balance sheet.
3. The operating activities section of the statement of cash flows includes activities that create revenue or expenses for the entity's business.
4. The financing activities section of the statement of cash flows includes paying dividends and making payments on long-term liabilities.


1. FALSE
2. TRUE
3. TRUE
4. TRUE

Business

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