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 flo

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.