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

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

A report of the cash a business earns and spends over a period of time is the statement of cash:

flows

income

position

equity

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Understand the purpose of the statement of cash flows: It is a financial report that provides information about the cash inflows and outflows of a business during a specific period. This helps stakeholders assess the company's liquidity and financial health.

Differentiate between the given options: The statement of income reports revenues and expenses, the statement of position (balance sheet) shows assets, liabilities, and equity, and the statement of equity tracks changes in shareholders' equity. None of these focus solely on cash movements.

Recognize that the statement of cash flows is divided into three main sections: operating activities, investing activities, and financing activities. Each section categorizes cash transactions based on their nature.

Identify the correct answer: The statement of cash flows is the report that specifically tracks the cash a business earns and spends over a period of time.

Conclude that the correct term for the report described in the problem is 'flows,' as it aligns with the definition and purpose of the statement of cash flows.