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 represents a cash inflow from financing activities?

Payment of dividends to shareholders

Collection of accounts receivable

Issuance of common stock for cash

Purchase of equipment for cash

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Verified step by step guidance

Step 1: Understand the concept of financing activities. Financing activities are transactions that involve raising capital or returning capital to investors. These activities typically include issuing stock, borrowing funds, or repaying debt.

Step 2: Analyze each option provided in the problem to determine whether it represents a cash inflow or outflow from financing activities.

Step 3: Evaluate 'Payment of dividends to shareholders.' This represents a cash outflow from financing activities because it involves returning capital to investors.

Step 4: Evaluate 'Collection of accounts receivable.' This is a cash inflow, but it is classified under operating activities, not financing activities, as it relates to the company's core operations.

Step 5: Evaluate 'Issuance of common stock for cash.' This represents a cash inflow from financing activities because it involves raising capital by issuing equity to investors.