What You Need to Know About Cash Flow (Course Id 2083)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), including CPAs and other accounting professionals seeking to understand or improve their knowledge of cash flow reporting.

• What is this course about or what problem does this course solve?
  The course provides a comprehensive overview of how to prepare a statement of cash flows and addresses key issues such as classification of transactions, presentation methods, and relevant disclosure requirements.

• How can the knowledge from this course be used?
  Learners can use the knowledge gained to accurately prepare, analyze, and interpret the statement of cash flows, with a clear understanding of operating, financing, and investing activities, as well as special topics like leases and noncash transactions.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding the statement of cash flows is crucial for CPAs and accountants because it reflects the entity's ability to generate cash from its core operations, which is a key measure of financial health and operational efficiency.

• When is this course relevant or timely?
  The course is up-to-date as of its most recent revision on March 1, 2024, making it relevant for current standards and practices under ASC Topic 230.

• How is a course like this consumed or used?
  This self-study course is delivered in text format under the NASBA QAS Registry and includes review questions and a final exam that must be completed online within a year of purchase to earn 2.0 CPE credits.

The statement of cash flows is one of the most important, if not the most important, financial statements prepared by an entity.  Of particular focus on this statement is the cash flow from operations which presents the amount of cash an entity is generating from its core business operations.  This course provides an overview of the requirements for preparing a statement of cash flows and discusses many other key cash flow related topics in additional detail.  The accounting requirements with respect to the statement of cash flows is prescribed within ASC Topic No. 230. 

NASBA QAS - Text - NASBA Registry - 2083

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
• Identify cash flow classification for various types of transactions
• Recognize disclosures requirements with respect to cash flow transactions

Chapter 1 - What You Need to Know About Cash Flow

Course Learning Objectives

Course Overview

Introduction

What is Cash?

Objectives of the Statement of Cash Flows

Who is Required to Prepare a Statement of Cash Flows

Review Questions

What is Cash?

Cash Flow Classification

Investing Activities

Financing Activities

Operating Activities

More Than One Classification

Classification Changes

Review Questions

Presentation � Gross vs. Net

Presentation � Direct vs. Indirect

Special Topics

Accounts Receivables

Inventory

Leases

Business Combinations

Noncash Investing & Financing Activity

Review Questions

Glossary of Key Terms