Learning objectives (with links to notes embedded)

• LO11-01: Explain the usefulness of the statement of cash flows.

• LO11-02: Define cash equivalents.

• LO11-03: Determine cash flows from operating activities by the direct method.

• LO11-04: Determine cash flows from operating activities by the indirect method.

• LO11-05: Identify transactions that are classified as investing activities.

• LO11-06: Identify transactions that are classified as financing activities.

• LO11-07: Identify transactions that represent noncash investing and financing activities.

• LO11-08: Prepare a statement of cash flows with the aid of a spreadsheet or t-accounts.

• LO11-09: Discuss the primary differences between U.S. GAAP and IFRS with respect to the statement of cash flows.