Welcome to the Statement of Cash Flows

This is a cash only statement, which differs from the other financial statements.

We will firstly explain the nature and purpose of a Statement of Cash Flows, then discuss its three main sections and activities.

Finally, the presentation and format for the Statement of Cash Flows will be explained.

This week’s Learning Objectives are

• Explain the importance of cash.
• Explain the nature and purpose of a statement of cash flows.
• Review the difference between cash and accrual accounting.
• Discuss the three main sections of the cash flow statement.
• Describe the format and presentation of the statement of cash flows.