Title: Module 2 Introduction: (CU4 M2) The Statement of Cash Flows
Course: SkillsCom BA 211 15.0 > Section: Credit Unit 4 Module 2

The Module begins with a discussion of the basic concepts and purposes of the statement of cash flows. First, the statement of cash flows using the indirect method, which is preferred by most businesses, is explained. The next section of the chapter explains the preparation of the statement of cash flows using the direct method, the preferred method of FASB. Emphasis is placed on the computation of cash flow from operating activities.

Module Outcomes:

- Understand the interrelationship of accounting to other areas of business.
- Have familiarity with generally accepted accounting principles.
- Interpret the effect of business transaction on the accounting system.