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

How is the change in cash classified on the statement of cash flows?

It is reported only as a single total at the end of the statement.

It is classified as a non-cash transaction.

It is divided into operating, investing, and financing activities.

It is included only in the notes to the financial statements.

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Verified step by step guidance

Understand the purpose of the statement of cash flows: It is a financial statement that provides information about the cash inflows and outflows of a company during a specific period. It helps stakeholders assess the company's liquidity, solvency, and financial flexibility.

Recognize the three main categories of cash flows: Operating activities, investing activities, and financing activities. These categories help classify the sources and uses of cash.

Operating activities: These include cash flows related to the primary revenue-generating activities of the business, such as cash received from customers and cash paid to suppliers and employees.

Investing activities: These include cash flows related to the acquisition and disposal of long-term assets, such as purchasing equipment or selling investments.

Financing activities: These include cash flows related to changes in the company's capital structure, such as issuing shares, borrowing, or repaying debt. The change in cash is divided into these three categories on the statement of cash flows.