What You Need to Know About Cash Flow
Author: Kelen Camehl
| CPE Credit: |
2 hours for CPAs |
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.
Publication Date: April 2026
Topics Covered
- What is Cash?
- Objectives of the Statement of Cash Flows
- Cash Flow Classification
- Investing Activities
- Financing Activities
- Opearting Activities
- More Than One Classification
- Classification Changes
- Presentation - Gross vs. Net
- Presentation - Direct vs. Indirect
- Special Topics
- Accounts Receivables
- Inventory
- Leases
- Business Combinations
- Noncash Investing & Financing Activity
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
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
