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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements is true regarding the Statement of Cash Flows?

The Statement of Cash Flows does not include information about cash paid for interest or taxes.

The Statement of Cash Flows only reports cash flows related to operating activities.

The Statement of Cash Flows reports cash inflows and outflows from operating, investing, and financing activities.

The Statement of Cash Flows is prepared using only the accrual basis of accounting.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of the Statement of Cash Flows. It is a financial statement that provides information about a company's cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Step 2: Analyze the first statement: 'The Statement of Cash Flows does not include information about cash paid for interest or taxes.' This is incorrect because the Statement of Cash Flows includes cash paid for interest and taxes under operating activities.

Step 3: Analyze the second statement: 'The Statement of Cash Flows only reports cash flows related to operating activities.' This is incorrect because the Statement of Cash Flows reports cash flows from three categories: operating, investing, and financing activities.

Step 4: Analyze the third statement: 'The Statement of Cash Flows reports cash inflows and outflows from operating, investing, and financing activities.' This is correct because the Statement of Cash Flows is designed to provide a comprehensive view of cash movements across these three categories.

Step 5: Analyze the fourth statement: 'The Statement of Cash Flows is prepared using only the accrual basis of accounting.' This is incorrect because the Statement of Cash Flows is prepared using the cash basis of accounting, focusing on actual cash transactions rather than accruals.