• Unit 10: Statement of Cash Flows

    The balance sheet and income statement are prepared using the accrual basis of accounting. The statement of cash flows is prepared using information from accrual-basis statements to tell what cash was received and how cash was spent. The statement of cash flows classifies business transactions as operating activities, investing activities, or financing activities.

    Completing this unit should take you approximately 7 hours.

    • 10.1: Operating Activities

      Operating activities on the statement of cash flows stem from a company's day-to-day operations. These activities include making sales to customers and paying vendors and employees. The operating activities section of the statement of cash flows can be prepared using the direct or indirect method.

    • 10.2: Financing Activities

    • Unit 10 Assessment