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

Which section of the statement of cash flows would most likely report cash received from the Troubled Asset Relief Program (TARP) during the Great Recession?

Financing activities

Operating activities

Supplemental disclosures

Investing activities

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Verified step by step guidance

Understand the purpose of the statement of cash flows, which is to categorize cash inflows and outflows into three main sections: operating activities, investing activities, and financing activities, along with supplemental disclosures.

Review the nature of the Troubled Asset Relief Program (TARP). TARP funds were provided by the government to stabilize financial institutions during the Great Recession, often in the form of loans or equity investments.

Determine the classification of cash flows related to TARP. Financing activities typically include transactions involving borrowing, repaying debt, or issuing equity, which aligns with the nature of TARP funds.

Contrast financing activities with operating and investing activities. Operating activities involve day-to-day business operations, while investing activities pertain to the acquisition or sale of long-term assets. TARP funds do not fit these categories.

Conclude that cash received from TARP would most likely be reported under financing activities, as it represents funding provided to the entity to support its financial stability.