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Ch 12: Statement of Cash Flows in Accounting

About This Chapter

View short, informative video lessons and learn about the statement of cash flows as it relates to accounting. Take a multiple-choice quiz for self-assessment at the end of every lesson.

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

Video Objective
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.

6 Lessons in Chapter 12: Statement of Cash Flows in Accounting
Disclosing Non-Cash Investing and Financing 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.

Analyzing Cash Flow Statement Patterns

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.

Sources Needed to Prepare the Cash Flow 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.

The Six-Step Process for Preparing a Statement of Cash Flows

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.

Using the Statement of Cash Flows for Decision Making

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.

Indirect & Direct Ways to Report Operating Activities

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.

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