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 would NOT be reported on the statement of cash flows?

Depreciation expense

Cash dividends paid

Cash paid to suppliers

Cash received from customers

Previous problemNext problem

Verified step by step guidance

Understand the purpose of the statement of cash flows: It reports cash inflows and outflows categorized into operating, investing, and financing activities. The goal is to show how cash is generated and used during a specific period.

Review the items listed in the problem: Depreciation expense, cash dividends paid, cash paid to suppliers, and cash received from customers. Determine whether each item involves actual cash movement.

Analyze 'Depreciation expense': Depreciation is a non-cash expense that allocates the cost of a tangible asset over its useful life. Since it does not involve cash movement, it is not reported on the statement of cash flows.

Examine 'Cash dividends paid': Dividends paid involve cash outflows and are reported under financing activities on the statement of cash flows.

Evaluate 'Cash paid to suppliers' and 'Cash received from customers': Both involve cash movement and are reported under operating activities on the statement of cash flows.