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

Which of the following is something you could find using the statement of cash flows?

The amount of cash received from customers during the period

The market value of the company's assets

The total amount of depreciation expense for the period

The ending balance of retained earnings

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Verified step by step guidance

Understand the purpose of the statement of cash flows: It provides information about a company's cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Identify the relevant category for cash received from customers: Cash received from customers is part of operating activities, as it relates to the company's core business operations.

Recognize that the market value of the company's assets is not reported on the statement of cash flows: This information is typically found in the notes to the financial statements or determined through market analysis.

Understand that depreciation expense is a non-cash item: While it is reported on the income statement and adjusted for in the operating activities section of the statement of cash flows, the total depreciation expense itself is not directly found on the statement of cash flows.

Note that the ending balance of retained earnings is reported on the statement of changes in equity, not the statement of cash flows. Therefore, the correct answer is that the statement of cash flows can be used to find the amount of cash received from customers during the period.