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 considered a cash inflow from financing activities on the statement of cash flows?

Cash received from the sale of equipment

Proceeds from issuing common stock

Cash received from customers

Interest received on investments

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Verified step by step guidance

Step 1: Understand the classification of cash flows in the statement of cash flows. Cash flows are categorized into three main activities: operating, investing, and financing activities.

Step 2: Define financing activities. Financing activities involve transactions related to obtaining or repaying capital, such as issuing stock, borrowing funds, or repaying debt.

Step 3: Analyze the options provided in the problem. Cash received from the sale of equipment is classified as an investing activity because it involves the purchase or sale of long-term assets. Cash received from customers is classified as an operating activity because it relates to the core business operations. Interest received on investments is also classified as an operating activity.

Step 4: Identify the correct option. Proceeds from issuing common stock are considered a cash inflow from financing activities because they represent funds raised by the company through equity financing.

Step 5: Conclude that the correct answer is 'Proceeds from issuing common stock,' as it aligns with the definition of financing activities in the statement of cash flows.