Course 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).

Learning Objective:

After completing this course, you should be able to:

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 in the preparation of the statement of cash flows using the direct method vs. the indirect method.

4.      Recognize and calculate how changes and transactions in asset and debt accounts affect the cash flows of a company.

5.      Recognize the cash flow issues addressed by ASU 2016-15, Statement of Cash Flows (Topic 230).

Field of Study    Accounting
Level of Knowledge    Basic to Intermediate
Prerequisite    Basic Accounting
Advanced Preparation    None
 

Revision Date: 4/19/2022

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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