GAAP requires the statement of cash flows to be presented when financial statements are prepared.

Answer the following questions in the Discussion Board:

• Explain the purposes of the statement of cash flows.
• List and describe the three categories of activities that must be reported in the statement of cash flows.
• Identify and describe the two methods that are allowed for reporting cash flows from operations.
• Describe the financial statement presentation of noncash investing and financing transactions. Include in your description an example of a noncash investing and financing transaction.