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- Publisher Website: 10.1108/S1085-462220190000022010
- Scopus: eid_2-s2.0-85062654912
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Book Chapter: Teaching Operating Cash Flow: One Matrix for Analysis – Two Methods for Presentation
Title | Teaching Operating Cash Flow: One Matrix for Analysis – Two Methods for Presentation |
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Authors | |
Keywords | Cash flow accounting equation Cash flow analysis Cash flow pedagogy Direct method Indirect method Operating cash flow |
Issue Date | 2019 |
Publisher | Emerald Publishing Limited. |
Citation | Teaching Operating Cash Flow: One Matrix for Analysis – Two Methods for Presentation. In Calderon, T (Eds.), Advances in Accounting Education: Teaching and Curriculum Innovations (Volume 22), p. 199-215. Bingley, UK: Emerald Publishing Limited, 2019 How to Cite? |
Abstract | The operating activities section of the statement of cash flows presents a long-standing teaching challenge for accounting educators. The direct method is easy to understand yet difficult to prepare; the indirect method is harder to understand but easier to prepare. Many instructors address the two methods separately, requiring students to learn two different ways for preparing the operating section of a statement of cash flows. Because of this focus on the mechanics of preparation, the result is often an emphasis on how to prepare the cash flow statement rather than on the essential information the statement provides. In this paper, the authors note that both direct and indirect methods begin at the same point, that is, the income statement, and end at the same point, that is, cash flow from operations. Then, the authors describe one process by which the income statement and the balance sheet can be analyzed to provide the information required to present operating cash flow using either the direct or the indirect method. Using this approach allows students to apply one intuitive process for computing cash flow from operations rather than memorizing two different sets of rules for direct and indirect methods. |
Persistent Identifier | http://hdl.handle.net/10722/273751 |
ISBN | |
ISSN | 2023 SCImago Journal Rankings: 0.103 |
Series/Report no. | Advances in Accounting Education |
DC Field | Value | Language |
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dc.contributor.author | Stice, JD | - |
dc.contributor.author | Stice, EK | - |
dc.contributor.author | Cottrell, DM | - |
dc.contributor.author | Stice, D | - |
dc.date.accessioned | 2019-08-13T08:17:00Z | - |
dc.date.available | 2019-08-13T08:17:00Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | Teaching Operating Cash Flow: One Matrix for Analysis – Two Methods for Presentation. In Calderon, T (Eds.), Advances in Accounting Education: Teaching and Curriculum Innovations (Volume 22), p. 199-215. Bingley, UK: Emerald Publishing Limited, 2019 | - |
dc.identifier.isbn | 9781787565401 | - |
dc.identifier.issn | 1085-4622 | - |
dc.identifier.uri | http://hdl.handle.net/10722/273751 | - |
dc.description.abstract | The operating activities section of the statement of cash flows presents a long-standing teaching challenge for accounting educators. The direct method is easy to understand yet difficult to prepare; the indirect method is harder to understand but easier to prepare. Many instructors address the two methods separately, requiring students to learn two different ways for preparing the operating section of a statement of cash flows. Because of this focus on the mechanics of preparation, the result is often an emphasis on how to prepare the cash flow statement rather than on the essential information the statement provides. In this paper, the authors note that both direct and indirect methods begin at the same point, that is, the income statement, and end at the same point, that is, cash flow from operations. Then, the authors describe one process by which the income statement and the balance sheet can be analyzed to provide the information required to present operating cash flow using either the direct or the indirect method. Using this approach allows students to apply one intuitive process for computing cash flow from operations rather than memorizing two different sets of rules for direct and indirect methods. | - |
dc.language | eng | - |
dc.publisher | Emerald Publishing Limited. | - |
dc.relation.ispartof | Advances in Accounting Education: Teaching and Curriculum Innovations (Volume 22) | - |
dc.relation.ispartofseries | Advances in Accounting Education | - |
dc.subject | Cash flow accounting equation | - |
dc.subject | Cash flow analysis | - |
dc.subject | Cash flow pedagogy | - |
dc.subject | Direct method | - |
dc.subject | Indirect method | - |
dc.subject | Operating cash flow | - |
dc.title | Teaching Operating Cash Flow: One Matrix for Analysis – Two Methods for Presentation | - |
dc.type | Book_Chapter | - |
dc.identifier.email | Stice, D: dstice@hku.hk | - |
dc.identifier.authority | Stice, D=rp02572 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1108/S1085-462220190000022010 | - |
dc.identifier.scopus | eid_2-s2.0-85062654912 | - |
dc.identifier.spage | 199 | - |
dc.identifier.epage | 215 | - |
dc.publisher.place | United Kingdom | - |
dc.identifier.issnl | 1085-4622 | - |