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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements about the statement of cash flows is correct?

It reports cash inflows and outflows from operating, investing, and financing activities.

It only includes cash transactions related to revenues and expenses.

It does not reconcile the beginning and ending cash balances.

It is prepared using only the accrual basis of accounting.

Previous problemNext problem

Verified step by step guidance

Understand the purpose of the statement of cash flows: It is a financial statement that provides information about cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Review the components of the statement of cash flows: Operating activities include cash flows related to the core business operations, investing activities involve cash flows from the purchase or sale of long-term assets, and financing activities include cash flows from transactions with creditors and investors.

Clarify that the statement of cash flows reconciles the beginning and ending cash balances by showing how cash has changed during the period due to the three categories of activities.

Note that the statement of cash flows is prepared using the cash basis of accounting, not the accrual basis. This means it only includes transactions that involve actual cash movements.

Evaluate the options provided in the problem: The correct statement is the one that accurately describes the statement of cash flows as reporting cash inflows and outflows from operating, investing, and financing activities.