Your Guide to FINANCIAL STATEMENTS (Mini-Series) - Intro to Cash Flow Statements | Direct Method

👉 Confused by accounting? Download this free cheat sheet: https://accountingstuff.com Learn all about the Cash Flow Statement and how to prepare it using the Direct Method. ▪ Cash Flow Accounting with the Direct Method (Part 2) → https://youtu.be/KOR10VPsyO8 ▪ Cash Flow Accounting with the Indirect Method (Part 3) → https://youtu.be/8CH-6wdfz0Y Many people have a hard time getting to grips with the Statement of Cash Flows, but in this episode of Accounting Basics for Beginners we break it down into nice and tasty, brain digestible chunks. You'll learn why CASH IS KING, and why the Direct Method is preferred by Investors. We break down the Cash Flow Statement into it's three sections: → Cash Flows from Operating Activities → Cash Flows from Investing Activities → Cash Flows from Financing Activities Last but not least... I'll explain why despite all the advantages of the Direct Method. Most corporations opt for the Indirect Method instead. 🔴Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel 👂LISTEN TO HARRY POTTER ▪ Audible → http://geni.us/8KaGkp 🖊STUFF I USED IN THIS VIDEO ▪ The pens → https://geni.us/sTPHTV ▪ The bullet journal → https://geni.us/yToB ⏱️TIMESTAMPS 00:00 - Intro 00:51 - Cash is King 01:23 - Difference between Cash and Profit 01:53 - Difference between Cash and Cash Flows 02:07 - Accrual Basis Doesn't Measure Cash Flows 02:34 - The Biggest Reason Start-Ups Fail 03:06 - What is a Cash Flow Statement? 03:53 - How does the Cash Flow Statement Work? 04:56 - Cash Flow from Financing Activities 05:30 - Cash Flow from Investing Activities 06:46 - Cash Flow from Operating Activities 07:35 - What is the Direct Method? 07:58 - How the Direct Method Works 10:21 - Advantages of the Direct Method 10:38 - Disadvantages of the Direct Method 🔎FAQ ▪ My Favourite Accounting Book for Beginners → http://geni.us/5mKR7m 🔝 CLOUD ACCOUNTING SOFTWARE ▪ XERO (Free Trial / Discount) → https://xero5440.partnerlinks.io/08mfchsgfw8z ▪ QuickBooks Online USA (Free Trial / Discount) → https://geni.us/quickbooksonlineusa ▪ QuickBooks Online Canada (Free Trial / Discount) → https://geni.us/quickbooksonlinecanada 🚶FOLLOW ME ON ▪ Instagram → https://www.instagram.com/accountingstuff ▪ TikTok → https://www.tiktok.com/@accounting_stuff ▪ Facebook → https://www.facebook.com/thisisaccountingstuff/ 🎬LEARN ACCOUNTING BASICS FOR FREE ▪ The Full Playlist → https://www.youtube.com/playlist?list=PL5zKSeS09l339nB6ujJPQ9Rsv99_b-aTb ________________________ DISCLAIMER Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you! ________________________ #accounting #accountingbasics #accountingstuff