Cash Is King: An Easy Way to Prepare Cash Flow Statements (A Workshop Manual)
Posted: 16 Jul 2019
Date Written: July 14, 2019
Abstract
Students majoring in business have often experienced difficulty in preparing and comprehending the cash flow statement. In a previous workshop, the authors introduced the “Cash is King” method, a simplistic alternative for recording journal entries for any transaction. This method also assists the student in understanding debits and credits and provides a bridge to mastering accrual accounting. In this workshop, we apply the “Cash is King” method for preparing the cash flow statement. We will be using a partial set of financial data and several examples in demonstrating how the method can be used in preparing the operating activities section of the cash flow statement.
Keywords: Accrual Accounting, Basic Accounting Equation, Cash Flow Statement, Debits And Credits, Operating Activities
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