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

Cash flows from the payment of taxes are reported in the statement of cash flows as part of:

Supplemental disclosures

Operating activities

Financing activities

Investing activities

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Understand the statement of cash flows: The statement of cash flows categorizes cash flows into three main activities: operating, investing, and financing. Additionally, supplemental disclosures provide additional information about cash flow activities.

Identify the nature of tax payments: Tax payments are typically related to the core operations of a business, such as income taxes on profits generated from operating activities.

Classify cash flows from tax payments: Since tax payments are directly tied to the company's operational earnings, they are classified under operating activities in the statement of cash flows.

Differentiate supplemental disclosures: Supplemental disclosures are not a primary category in the statement of cash flows but provide additional details, such as non-cash transactions or interest paid, which are disclosed separately.

Conclude the classification: Based on the nature of tax payments and their connection to operational earnings, cash flows from the payment of taxes are reported under operating activities in the statement of cash flows.