How can the statement of cash flows help in evaluating management's effectiveness in cash handling?

• A. By detailing the company's net income, it shows management's profitability.
• B. By showing how cash is generated and used, it reveals management's efficiency in cash management.
• C. By listing all assets, it shows management's investment strategy.
• D. By showing liabilities, it reveals management's debt strategy.

Answer: (B)