Which of the Following Statements About the Cash Flow Statement

Multiple Choice

Which of the following statements about the cash flow statement is FALSE?

A) The cash flow statement shows the relationship between net income and changes in the cash balance.
B) The cash flow statement determines a company's ability to pay its debts when they are due.
C) The cash flow statement is an aid to predicting future cash flows.
D) The cash flow statement can be used to evaluate the honesty of management in carrying out daily activities.