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 section of the statement of cash flows would a manager's report outlining projected sales for a new store location most likely relate to?

Operating activities

Investing activities

Financing activities

It would not appear on the statement of cash flows

Previous problemNext problem

Verified step by step guidance

Understand the purpose of the statement of cash flows: It is a financial statement that provides information about a company's cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Analyze the nature of the manager's report: A report outlining projected sales for a new store location is a forward-looking document, not a record of actual cash transactions.

Determine the relevance to the statement of cash flows: Since the statement of cash flows only includes actual cash transactions that have occurred, projections or forecasts do not appear on this statement.

Review the categories of the statement of cash flows: Operating activities involve day-to-day business operations, investing activities involve the purchase or sale of long-term assets, and financing activities involve transactions with creditors or investors. None of these categories include projections.

Conclude that the manager's report on projected sales is not related to the statement of cash flows, as it deals with future expectations rather than historical cash flow data.