Direction: Answer the following questions on a separate sheet of paper. 1. What is statement of cash flows? Briefly explain.

Q: What is the alternative way of preparing the Cash Flow Statement?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: What is the Indirect Method used when preparing the Statement of Cash Flows and please give me a few…

A: Indirect method: Under indirect method the net income is adjusted with the increase or decrease of…

Q: What is the reporting purpose of the statement of cash flows? Identify at least two questions that…

A: A  cash flow statement is a financial statement that shows how changes occurred in balance sheet…

Q: The accuracy of the statement of cash flows can be verified by computing the change in the balance…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Describe how the statement of cash flows is linked to each of the other financial statements (income…

A: The financial statements are issued by a company for its external users so that the investors can…

Q: What advantage do you see in compiling financial data into standardized statements like the Income…

A: Standardized statements also acknowledged as financial statements, these statements such as balance…

Q: owing? Select one: a. Income and cash flow

A: The  right answer is option b. Cash balances and cash flows.

Q: Discuss one aspect of the Statement of Cash Flows that can be difficult and write a short paragraph…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: What are the steps necessary to create a statement of cash flows in quickbooks.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Effects of all cash flows affect the balances of various accounts reported in the balance sheet.…

A: Definition:   Statement of cash flows: This statement reports all the cash transactions which are…

Q: What is the purpose of a statement of cash flows? How doesit differ from a balance sheet and an…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is