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Explain the purposes of the statement of cash flows

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Purpose and Elements of Statement of Cash Flows

GAAP requires the statement of cash flows be presented when financial statements are prepared.

Answer the following questions in the Discussion Board:

a. Explain the purposes of the statement of cash flows.

b. List and describe the three categories of activities that must be reported in the statement of cash flows.

c. Identify and describe the two methods that are allowed for reporting cash flows from operations.

d. Describe the financial statement presentation of noncash investing and financing transactions. Include in your description an example of a non-cash investing and financing transaction.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Statement of cash flows.

Intermediate accounting (16th ed.). (p. 1393). New York, NY: John Wiley & Sons, Inc.

Reference no: EM131571359

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