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

Information on the statement of cash flows helps users answer all of the following questions except:

What were the major sources and uses of cash during the period?

How were investing activities financed during the period?

What is the company's net income for the period?

How much cash was generated from operating activities?

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Verified step by step guidance

Understand the purpose of the statement of cash flows: It provides information about cash inflows and outflows categorized into operating, investing, and financing activities, but does not directly report net income.

Identify the major sections of the statement of cash flows: Operating activities, investing activities, and financing activities. Each section answers specific questions about cash movements.

Recognize that net income is reported on the income statement, not the statement of cash flows. The statement of cash flows focuses on cash transactions rather than accrual-based accounting measures like net income.

Analyze the specific questions listed in the problem: The statement of cash flows can answer questions about sources and uses of cash, financing of investing activities, and cash generated from operating activities, but not net income.

Conclude that the correct answer is 'What is the company's net income for the period?' because this information is not provided by the statement of cash flows.