Overview of the Statement of Cash Flows (Course Id 2081)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accountants looking for a foundational understanding of the statement of cash flows.

• What is this course about or what problem does this course solve?
  This course provides a basic overview of the statement of cash flows, explaining presentation methods, classification of cash flows, and the indirect method through a practical example, thereby addressing knowledge gaps in financial reporting.

• How can the knowledge from this course be used?
  The knowledge from this course can be used to correctly classify and present cash flow activities in accordance with ASC Topic No. 230, especially when preparing or reviewing financial statements.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding the statement of cash flows is essential for financial reporting, and this course supports CPAs and accountants in meeting technical proficiency requirements as part of their continuing education.

• When is this course relevant or timely?
  This course is timely for professionals needing an updated overview of ASC Topic No. 230, and it was most recently revised on March 1, 2024, ensuring current content.

• How is a course like this consumed or used?
  This self-paced, text-based course is delivered via QAS Self Study format, requiring participants to read the material and complete review and final exam questions to earn CPE credit.

This course provides a basic overview of the statement of cash flows.  This includes a discussion of the method of presentation, the classification of various cash inflows and cash outflows, as well as an illustrative example of the indirect method of presentation.  The accounting requirements with respect to the statement of cash flows is prescribed within ASC Topic No. 230. 

NASBA QAS - Text - NASBA Registry - 2081

Course Learning Objectives

• List the different methods used for presenting the statement of cash flows
• Differentiate between operating, financing, and investing activities in the statement of cash flows
• Recognize how a statement of cash flows is prepared using the indirect method

Chapter 1 - Overview of the Statement of Cash Flows

Course Learning Objectives

Course Overview

Introduction

Cash

Statement of Cash Flow Objectives

Scope Considerations

A Closer Look at Cash, Cash Equivalents & Restricted Cash

Review Questions

Classifying Cash Flows

Investing Activities

Financing Activities

Operating Activities

Multiple Classifications

Review Questions

Gross vs. Net Presentation

Direct Method vs. Indirect Method

Indirect Method – Comprehensive Example from ASC 230

Noncash Investing & Financing Activity

Review Questions

Glossary of Key Terms