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 best describes the information reported in the statement of cash flows?

It details the changes in shareholders' equity during the period.

It lists the company's assets, liabilities, and equity at a specific point in time.

It reports the cash inflows and outflows from operating, investing, and financing activities during a period.

It shows the company's revenues and expenses over a specific period.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of the statement of cash flows. The statement of cash flows provides information about a company's cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Step 2: Differentiate the statement of cash flows from other financial statements. For example, the balance sheet lists assets, liabilities, and equity at a specific point in time, while the income statement shows revenues and expenses over a period.

Step 3: Focus on the three main categories in the statement of cash flows: Operating activities (cash flows from core business operations), Investing activities (cash flows from buying or selling assets), and Financing activities (cash flows from borrowing, repaying debt, or issuing equity).

Step 4: Analyze the options provided in the problem. Eliminate choices that describe other financial statements, such as the balance sheet or income statement, and focus on the one that aligns with the purpose of the statement of cash flows.

Step 5: Conclude that the correct description of the statement of cash flows is: 'It reports the cash inflows and outflows from operating, investing, and financing activities during a period.'