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 is a primary purpose of the statement of cash flows?

To provide information about a company's cash receipts and cash payments during a period

To determine the market value of a company's assets

To report the financial position of a company at a specific point in time

To show the profitability of a company over a 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 is a financial report that provides information about a company's cash inflows (receipts) and outflows (payments) during a specific period. It helps stakeholders understand how cash is generated and used in operating, investing, and financing activities.

Step 2: Analyze the options provided in the question. The options include: (1) providing information about cash receipts and payments, (2) determining the market value of assets, (3) reporting financial position at a specific point in time, and (4) showing profitability over a period.

Step 3: Eliminate incorrect options. The statement of cash flows does not determine the market value of assets (this is related to valuation methods) nor does it report the financial position at a specific point in time (this is the purpose of the balance sheet). It also does not directly show profitability over a period (this is the purpose of the income statement).

Step 4: Focus on the correct option. The primary purpose of the statement of cash flows is to provide information about a company's cash receipts and cash payments during a period. This helps users assess the company's liquidity, solvency, and financial flexibility.

Step 5: Conclude that the correct answer is the option stating 'To provide information about a company's cash receipts and cash payments during a period,' as this aligns with the primary purpose of the statement of cash flows.