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 transactions is NOT reported in the statement of cash flows?

Paying cash dividends to shareholders

Purchasing inventory with cash

Exchanging land for equipment with no cash involved

Issuing common stock for cash

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Verified step by step guidance

Step 1: Understand the purpose of the statement of cash flows. It reports cash inflows and outflows categorized into operating, investing, and financing activities. Transactions that do not involve cash are excluded from this statement.

Step 2: Analyze each transaction to determine if it involves cash. Paying cash dividends to shareholders involves cash outflows and is reported under financing activities.

Step 3: Purchasing inventory with cash involves cash outflows and is reported under operating activities, as it relates to the core business operations.

Step 4: Exchanging land for equipment with no cash involved does not involve any cash inflow or outflow. Therefore, it is not reported in the statement of cash flows.

Step 5: Issuing common stock for cash involves cash inflows and is reported under financing activities, as it relates to raising capital for the business.