This article contains a cash flow statement problem which, while innocuous at first glance, should challenge even the most experienced statement preparer. The point of the exercise is that one attribute students need to acquire in the accounting curriculum is the ability to solve daunting technical problems. Tasks such as the penultimate cash flow problem require the solver to have insight into the articulation of financial statements as well as extensive knowledge of accounting algorithms. The article serves as a challenge to the reader to create the “ultimate” cash flow problem. The “penultimate” cash flow statement presented in this article, and the ultimate cash flow problem yet to be created, are intended for use in intermediate accounting. Let the contest begin!
This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.
William Cress, University of Wisconsin – La Crosse
Kenneth Winter, University of Wisconsin – La Crosse