The Cash Flow Statement provides a very thorough and interactive, multimedia-rich approach for teaching individuals how to prepare and interpret a Canadian Statement of Cash Flows using the Indirect Method. The module provides adequate practice and feedback. Use of the module requires contacting the author and requesting a username and password.
The module lists the following eight objectives:
To explain the purpose and use of the statement of cash flows(3 slides).
To review the accrual basis of accounting (24 slides).
To explain the terms cash and cash equivalents as well as operating, investing, and financing activities.(23 slides).
To prepare the operating section of the statement of cash flow (75 slides).
To prepare the investing section of the statement of cash flows (9 slides).
To prepare the financing section of the statement of cash flows (22 slides).
To interpret a completed statement of cash flows.
To provide self-assessment review exercises.
Target Student Population:
Financial Accounting and Accounting Principles students
Prerequisite Knowledge or Skills:
While all pertinent knowledge is reviewed in lessons 1 and 2, having a basic understanding of the balance sheet, income statement, accrual basis of accounting, debits and credits would be a plus.
Type of Material:
Combination lecture presentation/tutorial
Excellent supplement to the textbook for independent study. Excellent module to include in an online course.
Internet access. Ability to download and unzip files. Works with Netscape Navigator 7.1 (other browsers not tested).
Evaluation and Observation
The Cash Flow Statement is an outstanding lecture/tutorial. The module provides a comprehensive demonstration of all concepts involved in preparing a statement of cash flows using the indirect method. Content is current, relevant, and accurate and includes an adequate amount of material given the complexity of the topic. The module is completely self-contained. Correct and incorrect response feedback has been incorporated into the interactive activities. Excellent describes how all concepts are integrated and summarized.
Note: While not a concern, users need to be aware that the module was designed for use in Canada. For U.S. users, it should be noted that amortization expense and accumulated amortization accounts are used in conjunction with plant and equipment instead of depreciation expense and accumulated depreciation accounts.
Potential Effectiveness as a Teaching Tool
The Cash Flow Statement module is an outstanding tool and very efficient given the complexity of the topic. It identifies learning objectives. Prerequisite knowledge is identified and reviewed with a separate tutorial. Concepts are reinforced progressively, building on prior concepts. Relationships between concepts are demonstrated. In additional review and practice lessos have been included.
Ease of Use for Both Students and Faculty
Once deployed, the Cash Flow Statement module is relatively easy to use. It has excellent visual appeal. The module engages its users with appropriately placedinteractive activities. This feature is particularly well done. Lessons are segmented by learning objective. All navigation buttons function appropriately. Users can exit at any time, jump to specific slides within a lesson, resume a lesson, move forward and backward, or return to table of contents (objectives page). Inclusion of illustrations and animated graphics to highlight procedures is exceptionally well done. Usage is relatively intuitive. Finally,\n an online calculator has also been included. Concerns listed below are minor, considering the overall quality of the module.
Reviewers had difficulty deploying the module. The following procedures should be followed when downloading the files: 1) Create a new folder. 2) Download the Cash Flow file into the new folder just created. 3) Download the Xtras.zip file into the same folder and unzip the file. 4) Finally run the module from within the folder by clicking on the Cash Flow icon.
Also instructions have not been consistently provided so that users have to deduce by trial and error where to click at certain times. For example, clicking on an objective deploys it. When prompted for responses, how the response is to be entered is not explained.
Upon completion of section on Explain the term ?Cash and Cash Equivalents?, and ?Operating?, ?Investing?, and ?Financing? activities the screen erroneously displays the following message: ?Congratulations! You have finished learning about the Accrual Basis of Accounting.?