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

The statement of cash flows reports noncash investing and financing transactions in:

A separate schedule or in the notes to the financial statements

The investing activities section

The financing activities section

The operating activities section

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Verified step by step guidance

Understand the purpose of the statement of cash flows: It is used to report cash inflows and outflows from operating, investing, and financing activities, as well as noncash transactions that impact financial position.

Recognize that noncash investing and financing transactions do not involve direct cash flows but still affect the financial position of the company. Examples include acquiring assets through issuing debt or equity.

Learn where noncash transactions are reported: They are disclosed in a separate schedule or in the notes to the financial statements, rather than being included in the main sections of the statement of cash flows.

Understand why noncash transactions are not included in the operating, investing, or financing sections: These sections are reserved for transactions that directly involve cash inflows or outflows.

Review the importance of disclosure: Reporting noncash transactions in a separate schedule or notes ensures transparency and provides a complete picture of the company's financial activities.