Author : | Andrew Clark, EA |
Course Length : | Pages: 35 ||| Word Count: 19,271 ||| Review Questions: 9 ||| Final Exam Questions: 15 |
CPE Credits : | 3.0 |
IRS Credits : | 0 |
Price : | $26.95 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Accounting - Accounting for Course Id 1870 |
Description : | Cash flow is one of the most important long-term indicators for the overall financial health of a business. For a business to enjoy long-term success, sufficient cash must always be on-hand to accomplish various things including paying worker salaries, resolving immediate debts, and paying the company’s normal operating costs. Businesses also need cash on-hand to pay for expenses, repay bank loans, pay taxes, and to purchase new assets to fuel the company’s future growth. A company’s cash flow is documented in their cash flow statement. The cash flow statement, which is also known as a statement of cash flows, is a financial document that summarizes the amount of both cash and cash equivalents entering and exiting a company during a given time period. The cash flow statement provides useful context for both a company’s balance sheet and income statement and has been a mandatory part of all corporate financial reports since 1987. The cash flow report is important because it informs investors, creditors, company owners, and other interested parties of the business cash position of the company and can act as a strong indicator of a company’s overall financial health. |
Usage Rank : | 20909 |
Release : | 2024 |
Version : | 1.0 |
Prerequisites : | Basic understanding of accounting concepts. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
Understanding the Cash Flow Statement
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Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 10-Jul-2024 |
NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Approved Audience : | NASBA QAS - Text - NASBA Registry - 1870 |
Keywords : | Accounting, Understanding, Statement, Cash, Flows, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives At the end of this course, students will be able to:
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Course Contents : | Chapter 1 - Understanding the Statement of Cash Flows Course Learning Objectives Introduction Preparing the Statement of Cash Flows How Useful are Cash Flows? Cash Flow Classification Understanding Cash Flow Data Statement of Cash Flow Format Preparing the Statement of Cash Flows First Example – ABC Corp. Year 1 Step 1: Determine the Company’s Change in Cash Step 2: Determine Net Cash Flow from Operating Activities Direct Method Indirect Method Step 3: Determine Net Cash Flows from Investing and Financing Activities Statement of Cash Flows Second Example – ABC Corp. Year 2 Step 1: Determine the Company’s Change in Cash Step 2: Determine Net Cash Flow from Operating Activities Step 3: Determine Net Cash Flows from Investing and Financing Activities Statement of Cash Flows Third Example – ABC Corp. Year 3 Step 1: Determine the Company’s Change in Cash Step 2: Determine the Net Cash Flow from Operating Activities Step 3: Determine Net Cash Flows from Investing and Financing Activities Statement of Cash Flows Part 1 Review Questions Direct Method Versus Indirect Method – Net Cash Flow from Operating Activities Indirect Method (Reconciliation Method) Direct Method (Income Statement Method) Cash Receipts to Customers Cash Payments to Suppliers Cash Payments for Operating Expenses Cash Payments for Income Taxes Calculating Net Cash Flow from Operating Activities – Direct Method Controversy Surrounding Direct versus Indirect Method Direct Method Indirect Method Special Problems Regarding the Preparation of Company Statements Adjustments to Net Income Depreciation and Amortization Post-retirement Benefit Costs Change in Deferred Income Taxes Equity Method of Accounting Losses and Gains Stock Options Other Extraordinary Items Accounts Receivable (Net) Indirect Method Direct Method Other Working Capital Changes Net Losses Significant Noncash Transactions Summary Part 2 Review Questions Glossary |