ACC201 CASE, SLP and TD MODULE4

Statement of Cash Flows

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

•Case ◦The student should be able to apply concepts of the statement of cash flows.

◦The student should be able to compare the statement of cash flows with income statement.

•SLP ◦The student should be able to prepare the statement of cash flows.

◦The student should be able to compare the statement of cash flows with income statement.

•Discussion ◦The student should demonstrate knowledge about globalization of accounting standards.

◦The student should prepare and submit a self-reflective essay.

Module Overview

The balance sheet reviewed during the past module shows all assets, liabilities, and equity of an entity and is an important snapshot of the organization's financial position. This statement is also referred to as a statement of financial position.

The main purpose of this module is to examine the statement of cash flows in more detail. Objectives of the SCF are 1) to provide information about an entity's cash inflows (receipts) and cash outflows (payments) and 2) to provide information about the operating, investing, and financing activities of the business.

As usefulness of SCF, SCF helps investors, creditors, and others to assess

•the company's ability to generate future positive net cash flows.

•the company's ability to meet its obligations and pay dividends.

•the reasons for the difference between net income and related cash flows and outflows.

•the cash and non-cash aspects of investing and financing transactions.