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 NOT involved in the preparation of the statement of cash flows?

Analyzing changes in balance sheet accounts to determine cash flows

Identifying cash inflows and outflows from operating, investing, and financing activities

Adjusting net income for non-cash items such as depreciation

Calculating ending inventory using the lower of cost or market method

Previous problemNext problem

Verified step by step guidance

Step 1: 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.

Step 2: Recognize the processes involved in preparing the statement of cash flows. These include analyzing changes in balance sheet accounts, identifying cash inflows and outflows, and adjusting net income for non-cash items like depreciation.

Step 3: Note that calculating ending inventory using the lower of cost or market method is a process related to inventory valuation, which is part of the preparation of the balance sheet or income statement, not the statement of cash flows.

Step 4: Compare the listed activities to determine which one is unrelated to the preparation of the statement of cash flows. The unrelated activity is the calculation of ending inventory using the lower of cost or market method.

Step 5: Conclude that the correct answer is the activity that does not contribute to the preparation of the statement of cash flows, which is calculating ending inventory using the lower of cost or market method.