Review two of your peers’ posts and provide ideas to overcome the confusion and strategies to build a better understanding of and confidence toward that financial statement. Feel free to share any visuals or resources you may find online to help support your ideas of overcoming confusion with your peers. Both peers have to have a response. Thank you
This is one of my peers post below.
What makes financial statements confusing and intimidating to learn in my case is determining and understanding which information I should use for each report and where to find the information. According to Pride, Kapoor & Hughes (2015), “the statement of cash flows illustrates how the company’s operating, investing, and financing activities affect cash during an accounting period”. The focus of the statement of cash flow is on how much cash the business has on hand to pay its’ bills. The cash flow statement is divided into three sections: Cash flow from operations, cash flow from investing activities, cash flow from financing activities. The cash flow statement is not a part of the double entry system of accounting. As a result it is often challenging for students to prepare the statement because we often confuse where we should pull the information from and where to place it on the cash flow statement(Hertenstein & Mckinnon, 1997).