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 of the following cash transactions is classified as a cash inflow from investing activities on the statement of cash flows?

Sale of equipment for cash

Issuance of common stock for cash

Receipt of cash from customers

Borrowing cash from a bank

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Verified step by step guidance

Understand the classification of cash flows: The statement of cash flows categorizes cash transactions into three main activities: operating, investing, and financing. Investing activities typically involve transactions related to the acquisition or disposal of long-term assets.

Analyze the transaction 'Sale of equipment for cash': Selling equipment is considered an investing activity because equipment is a long-term asset. The cash received from the sale represents a cash inflow from investing activities.

Evaluate the transaction 'Issuance of common stock for cash': Issuing common stock is a financing activity because it involves raising funds from shareholders to finance the company's operations or growth.

Examine the transaction 'Receipt of cash from customers': Receiving cash from customers is an operating activity because it is directly related to the company's primary business operations, such as selling goods or services.

Review the transaction 'Borrowing cash from a bank': Borrowing cash from a bank is a financing activity because it involves obtaining funds to finance the company's operations or investments, typically through loans or credit.