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 NOT a valid category in the Statement of Cash Flows?

Financing activities

Operating activities

Marketing activities

Investing activities

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Understand the purpose of the Statement of Cash Flows: It categorizes cash inflows and outflows into three main activities—Operating, Investing, and Financing—to provide insights into a company's cash management.

Review the definitions of each category: Operating activities involve cash flows from core business operations, Investing activities involve cash flows from the purchase or sale of long-term assets, and Financing activities involve cash flows related to borrowing, repaying debt, or equity transactions.

Identify the invalid category: Marketing activities are not a recognized category in the Statement of Cash Flows. Marketing expenses are typically included in Operating activities as part of the company's day-to-day operations.

Confirm the correct categories: The valid categories in the Statement of Cash Flows are Operating activities, Investing activities, and Financing activities.

Conclude that Marketing activities are not a valid category in the Statement of Cash Flows, as they are not part of the standard classification used in financial reporting.