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 typically included in cash flows from financing activities on the statement of cash flows?

Issuance of common stock

Payment of salaries to employees

Purchase of inventory

Depreciation expense

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Verified step by step guidance

Understand the concept of cash flows from financing activities: These are cash transactions related to the company's financing, such as issuing stock, borrowing, or repaying debt.

Review the options provided in the problem: Issuance of common stock, Payment of salaries to employees, Purchase of inventory, and Depreciation expense.

Eliminate options that are not financing activities: Payment of salaries to employees and Purchase of inventory are operating activities, while Depreciation expense is a non-cash item and does not appear in the cash flow statement.

Focus on the issuance of common stock: This is a financing activity because it involves raising capital by issuing equity to investors.

Conclude that the correct answer is 'Issuance of common stock' as it directly relates to cash flows from financing activities.