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

In the context of the statement of cash flows, which group is primarily responsible for establishing the standards that govern how cash flow information is reported by companies?

Internal Revenue Service (IRS)

Financial Accounting Standards Board (FASB)

Federal Reserve Board

Securities and Exchange Commission (SEC)

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Verified step by step guidance

Understand the context of the question: The statement of cash flows is a financial statement that provides information about a company's cash inflows and outflows during a specific period. It is governed by accounting standards to ensure consistency and comparability.

Identify the role of each entity mentioned in the options: The Internal Revenue Service (IRS) primarily deals with tax regulations, not accounting standards. The Federal Reserve Board focuses on monetary policy and banking regulations. The Securities and Exchange Commission (SEC) oversees securities markets and enforces financial reporting requirements but does not establish accounting standards.

Recognize the entity responsible for setting accounting standards: The Financial Accounting Standards Board (FASB) is the organization tasked with establishing and improving accounting standards in the United States, including those related to the statement of cash flows.

Relate the FASB's role to the statement of cash flows: The FASB issues guidelines and standards, such as those found in Generally Accepted Accounting Principles (GAAP), which dictate how companies should prepare and present their statement of cash flows.

Conclude that the correct answer is the Financial Accounting Standards Board (FASB), as it is the entity responsible for establishing the standards governing the reporting of cash flow information by companies.