All of the Following Are Limitations of the Statement of Cash

Multiple Choice

All of the following are limitations of the statement of cash flows, except:

A) financial ratios based on cash flow data are better at predicting financial distress for companies than other ratios that rely solely on accrual accounting balances.
B) it provides past cash flow data, which may not be a good predictor of future cash flows.
C) the direct method of determining cash flows from operating activities is more costly to apply than the indirect method.
D) non-cash transactions and events while relevant to the financial affairs of the entity are excluded from the statement of cash flows.