The statement of cash flows is the baby of the financial statements and tracks several activities to provide insight into cash movement in an org.
- The third primary financial statement … is the statement of cash flows. … Conceptually, the statement of cash flows … is quite simple, cash in, cash out. … The insight of accountants is to … separate those cash flows into three … categories, operating activities, … investing activities, and financing activities. … Those three categories of cash flows … are what are reported in the statement of cash flows … and the statement of cash flows … summarizes cash inflows and outflows … for a period of time. … Now, operating activities are … what a company does every single day. … They collect cash from customers. … They pay cash for inventory, they … pay cash to employees, for rent. … They pay for advertising. … They pay for research and development. … All those things are operating activities. … Think of operating activities as the things … that a business does every single day … and hopefully, a company would … generate cash from its operating activities. … You would hope that a business …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
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