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

Suggested Citation

Fang, Jianing and Slavin, Nathan S, Cash Is King: An Easy Way to Prepare Cash Flow Statements (A Workshop Manual) (July 14, 2019). XVIII International Business & Economy Conference (IBEC) - Rennes, France, 2019, Available at SSRN: https://ssrn.com/abstract=3419801

Jianing Fang (Contact Author)

Marist College ( email )

United States

Nathan S Slavin

Hofstra University ( email )

Hempstead, NY 11549
United States

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