Description:
A statement of cash flows is required as part of a full set of financial statements. It must be prepared in conformity with generally accepted accounting principles (GAAP). The statement is not required if the financial statements are prepared on a basis of accounting other than GAAP. The statement must be included in both annual and interim financial statements. This course discusses the requirements of ASC 230, Statement of Cash Flows (ASC 230-10-45-18 and 45-27). ASC 958-205, Not-for-Profit Entities: Presentation of Financial Statements, requires the statement of cash flows for not-for-profit entities.
Learn Objectives:
1. Recognize the use of and the objectives for a statement of cash flows.
2. Identify between operating, investing, and financing activities, and how different cash variables will affect the statement of cash flows.
3. Identify differences for preparation of the statement of cash flows using the direct method vs. the indirect method.
4. Understand and calculate how changes and transactions in asset and debt accounts affect the cash flows of a company.
Topics Covered:
- Cash and Cash Equivalents
- Reconciliation of Net Income to Cash Flow from Operations
- Direct Method
- Indirect (Reconciliation) Method
- Gross versus Net Cash Flows
- Operating Activities
- Investing Activities
- Financing Activities
- Multiclassification
- Noncash Investing and Financing Activities
- Special Items in the Income Statement
- Agency Arrangements
- Hedging Transactions
- Foreign Currency Cash Flows
- Comprehensive Examples
- Cash Flow Analysis
- IFRS Differences Affecting the Statement of Cash Flows
Delivery Method: Online Interactive Self Study
Category: Accounting and Auditing
Field of Study: Accounting
Level: Basic to Intermediate
Prerequisites: Basic Accounting
Passing Score: 70%
NASBA: Yes, QAS Self Study
Author: Delta Publishing
ABOUT THE SUBJECT MATTER EXPERT:
Dr. Jae K. Shim is Professor of Business at California State University, Long Beach,
California. Dr. Shim received his MBA and Ph.D. degrees from the University of California at Berkeley (Haas School of Business.) He has co-authored over 50 professional business books and has been a consultant to commercial and nonprofit organizations for over 30 years.
