Back to Basics: Algebraic Foundations of the Statement of Cash Flows

Autor/inn/en	Joyner, Donald T.; Banatte, Jean-Marie; Dondeti, V. Reddy
Titel	Back to Basics: Algebraic Foundations of the Statement of Cash Flows
Quelle	In: American Journal of Business Education, 7 (2014) 1, S.93-98 (6 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	1942-2504
Schlagwörter	Algebra; Business Administration Education; Accounting; Money Management; Financial Audits; Equations (Mathematics); Undergraduate Students + Suchen Sie Ihr Suchwort? Abrechnung; Buchführung; Buchhaltung; Equations; Mathematics; Gleichungslehre
Abstract	The indirect method for preparing the statement of cash flows, as described in many standard textbooks, involves an item-by-item approach, telling you to add to or subtract from the net income, the increases or decreases in the balance sheet items, such as accounts payable or accounts receivable. Many business students, especially at the undergraduate level, find these black-box-rules confusing. In recent years, several articles have appeared in the accounting literature, exploring the link between the algebraic foundations and the enumeration of items in the statement of cash flows. In this paper, an explanation is provided, through an analysis of the basic algebraic equation of the balance sheet, for the black-box-rules of the indirect method in a simple and concise manner. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01