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Classroom Activities: Cash Flow Statement

The document outlines two classroom activities designed to teach students about the Statement of Cash Flows in accountancy. The first activity involves classifying business transactions into Operating, Investing, and Financing categories, while the second activity focuses on organizing jumbled cash flow items to prepare a Statement of Cash Flows using the indirect method. Both activities aim to enhance students' understanding and skills related to cash flow management.

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34 views2 pages

Classroom Activities: Cash Flow Statement

The document outlines two classroom activities designed to teach students about the Statement of Cash Flows in accountancy. The first activity involves classifying business transactions into Operating, Investing, and Financing categories, while the second activity focuses on organizing jumbled cash flow items to prepare a Statement of Cash Flows using the indirect method. Both activities aim to enhance students' understanding and skills related to cash flow management.

Uploaded by

bimbam.crebello
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Classroom Activities for the Topic: Statement of Cash Flows

Subject: Fundamentals of Accountancy, Business, and Management (FABM)

Activity 1: Cash Flow Classification Game (Sorting Activity)


Objective:
To classify various business transactions into the three types of activities in
the Statement of Cash Flows: Operating, Investing, and Financing.
Materials Needed:
- Flashcards or printed slips of paper with various transactions
- Manila paper or whiteboard with three labeled columns: - Operating
Activities - Investing Activities - Financing Activities
Instructions: 1. Divide students into small groups (3-5 members). 2.
Provide each group with a set of transaction cards. 3. Each group classifies
the transactions under the correct activity type by placing them in the
appropriate column. 4. After sorting, ask each group to explain the rationale
for their classification. 5. The teacher reviews the answers and discusses any
misconceptions.
Sample Transactions for Classification: - Paid salaries to employees -
Collected cash from customers - Purchased new equipment - Borrowed
money from the bank - Issued shares of stock - Paid dividends to
shareholders - Sold an old vehicle for cash - Paid interest on a bank loan -
Bought inventory - Received cash from a customer in advance
Answer Key: - Operating: Paid salaries, Collected cash from customers, Paid
interest, Bought inventory, Received customer advance - Investing:
Purchased equipment, Sold vehicle - Financing: Borrowed from bank, Issued
shares, Paid dividends

Activity 2: Cash Flow Statement Puzzle


Objective:
To develop skills in organizing and preparing a Statement of Cash Flows
using jumbled entries.
Materials Needed:
- Printed worksheet with a jumbled list of cash flow items
- Calculator (optional)
Instructions: 1. Provide students with a worksheet that lists jumbled cash
flow items. 2. Ask them to: a. Classify each item as Operating, Investing, or
Financing activity. b. Compute the net cash provided or used by each
section. c. Complete the Statement of Cash Flows using the indirect method.
Sample Jumbled Cash Flow Items: - Net Income: P100,000 - Depreciation
Expense: P10,000 - Increase in Accounts Receivable: (P5,000) - Decrease in
Inventory: P3,000 - Purchase of Equipment: (P30,000) - Loan Received:
P50,000 - Payment of Dividends: (P15,000) - Increase in Accounts Payable:
P4,000 - Cash at beginning of period: P20,000
Expected Output:
Statement of Cash Flows (Indirect Method) - Cash Flows from
Operating Activities: - Net Income: P100,000 - Add: Depreciation: P10,000
- Less: Increase in AR: (P5,000) - Add: Decrease in Inventory: P3,000 - Add:
Increase in AP: P4,000 - Net Cash from Operating: P112,000
 Cash Flows from Investing Activities:
o Purchase of Equipment: (P30,000)
o Net Cash from Investing: (P30,000)
 Cash Flows from Financing Activities:
o Loan Received: P50,000
o Dividends Paid: (P15,000)
o Net Cash from Financing: P35,000
 Net Increase in Cash: P117,000
 Beginning Cash Balance: P20,000
 Ending Cash Balance: P137,000

End of Activities

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