About This Chapter
Statement of Cash Flows in Accounting - Chapter Summary and Learning Objectives
A primary purpose of accounting is to prepare a detailed and accurate statement of cash flows. This chapter will teach you all about this accounting operation and its relation to business. The chapter lessons detail specific aspects of such statements as the resources required to prepare them and the definitions of various accounting terms. Take a short quiz following each lesson to measure how well you have learned the material and contact an instructor with any questions that you might have. These lessons cover such topics as:
- The process to prepare a statement
- Investing vs. financing vs. operating activities
- How to analyze statement patterns
- What sources are needed to prepare the statement
- How the statement is used to make decisions
|Distinguishing Among Operating, Investing & Financing Activities||Contrast different types of accounting activities.|
|Disclosing Non-Cash Investing and Financing Activities||Learn about the disclosure of non-cash financial activities.|
|Analyzing Cash Flow Statement Patterns||Discover how to analyze patterns between cash flow statements.|
|Sources Needed to Prepare the Cash Flow Statement||See what sources are required to create a statement of cash flows.|
|The Six-Step Process for Preparing a Statement of Cash Flows||Examine the process to prepare a statements of cash flows.|
|Using the Statement of Cash Flows for Decision Making||Find out how to utilize the statement of cash flows in decision making.|
|Indirect & Direct Ways to Report Operating Activities||Learn about opposing ways to report operating activities.|
1. Disclosing Non-Cash Investing and Financing Activities
In this lesson, we'll explore examples of non-cash investing and financing activities. You'll learn what these activities are, how to disclose them and why it's so important to disclose properly.
2. Analyzing Cash Flow Statement Patterns
The cash flow statement identifies where a company obtained and used cash during a specified period of time. In this lesson, we analyze the patterns conveyed by this statement.
3. Sources Needed to Prepare the Cash Flow Statement
The cash flow statement is one of the most important pieces of paperwork that a company will produce. In this lesson, we look at where the information for the cash flow statement comes from.
4. The Six-Step Process for Preparing a Statement of Cash Flows
In this lesson, we'll define and discuss the purpose of the cash flow statement. You'll learn how to construct the statement using six easy steps. We'll also provide examples of incoming and outgoing cash activities.
5. Using the Statement of Cash Flows for Decision Making
In this lesson, we'll look at how cash flow statements. No matter how a cash flow statement is prepared it can help companies make the best possible decisions based on their current flexibility.
6. Indirect & Direct Ways to Report Operating Activities
Knowing which method to use to prepare the operating activities section of a cash flow statement is important for making sure that your work is useful to your company. In this lesson, we go over differences between the indirect and direct methods.
Earning College Credit
Did you know… We have over 95 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Accounting 101: Financial Accounting course
- Introduction to Accounting
- Financial Statements in Accounting
- Mechanics of the Accounting Cycle
- Adjusting Accounts and Preparing Financial Statements
- Internal Controls in Accounting
- Merchandising Operations and Inventory in Accounting
- Receivables in Accounting
- Completing the Operating Cycle in Accounting
- Long-Term Assets in Accounting
- Current and Long-Term Liabilities in Accounting
- Reporting & Analyzing Equity in Accounting
- Financial Statement Analysis in Accounting
- Studying for Accounting 101