Which of the following is NOT a fundamental question for directors regarding the statement of cash flows?

The statement of cash flows provides crucial insights into a company's cash management and liquidity. Fundamental questions for directors focus on understanding the dynamics of cash inflows and outflows, ensuring that the company can meet its obligations, and assessing where cash is being allocated for investments.

The question concerning the firm's total assets does not directly pertain to the analysis of cash flows. While total assets offer a snapshot of the firm's financial position at a given moment, they do not provide the direct insights that the cash flow statement does regarding how cash is generated and utilized within a specific period.

Directors need to concentrate on how cash flows are managed, whether cash inflows are adequate for meeting short-term and long-term obligations, and the specific areas in which the company is investing its cash to foster growth and sustainability. Such questions are vital for a thorough understanding of financial health and operational efficacy, guiding strategic decisions.