Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

Financial Accounting

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

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Multiple Choice

In the context of the statement of cash flows, frequent, consistent cash flows are best described as:

Operating activities

Investing activities

Financing activities

Non-cash transactions

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Verified step by step guidance

Understand the categories of cash flows in the statement of cash flows: Operating activities, Investing activities, Financing activities, and Non-cash transactions.

Recognize that operating activities include cash flows related to the core business operations, such as cash received from customers and cash paid to suppliers and employees. These are frequent and consistent cash flows.

Identify that investing activities involve cash flows from the purchase or sale of long-term assets, such as property, plant, and equipment, or investments. These are typically less frequent.

Understand that financing activities include cash flows related to borrowing, repaying debt, issuing equity, or paying dividends. These are also less frequent compared to operating activities.

Note that non-cash transactions, such as issuing stock to purchase assets, do not involve cash flows and are disclosed separately in the statement of cash flows. Therefore, frequent, consistent cash flows are best described as operating activities.