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 a cash outflow from investing activities on the statement of cash flows?

Purchase of equipment

Repayment of bank loans

Payment of dividends

Payment to suppliers for inventory

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Verified step by step guidance

Understand the classification of cash flows: The statement of cash flows categorizes cash flows into three main activities: operating, investing, and financing. Investing activities typically involve transactions related to the acquisition or disposal of long-term assets.

Identify the nature of each option: Analyze each option to determine whether it relates to investing activities. For example, purchasing equipment is a transaction involving a long-term asset, which is classified under investing activities.

Classify repayment of bank loans: Repayment of bank loans is a financing activity because it involves the settlement of debt obligations.

Classify payment of dividends: Payment of dividends is also a financing activity, as it represents a return to shareholders.

Classify payment to suppliers for inventory: Payment to suppliers for inventory is an operating activity because it relates to the day-to-day operations of the business.