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 best describes the statement of cash flows?

A document that lists all outstanding debts and liabilities.

A financial statement that provides a written cash flow plan for future periods.

A financial statement that reports a company's cash inflows and outflows over a specific period.

A summary of a company's revenues and expenses for a given period.

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Verified step by step guidance

Understand the purpose of the statement of cash flows: It is a financial statement that provides information about a company's cash inflows (receipts) and outflows (payments) over a specific period.

Recognize the three main sections of the statement of cash flows: Operating activities, investing activities, and financing activities. Each section categorizes cash transactions based on their nature.

Differentiate the statement of cash flows from other financial statements: Unlike the balance sheet (which lists assets, liabilities, and equity) or the income statement (which summarizes revenues and expenses), the statement of cash flows focuses solely on cash movement.

Identify the correct description: The statement of cash flows does not list debts and liabilities, nor does it provide a written plan for future periods. It reports actual cash transactions during a specific timeframe.

Confirm the correct answer: The statement of cash flows is best described as 'A financial statement that reports a company's cash inflows and outflows over a specific period.'