Using balance sheets and income statements, accountants are able to draw up cash flow statements that detail the areas where cash is being generated and 'burned' by a business. This is of crucial importance as it gives the users of accounts essential 'supplementary' information on which to base their decisions. The cash flow statement, while not a headline accounting statement, details how well cash is being managed and focuses the investment mind on the adage that 'cash is king'.

This tutorial explains the important difference between cash and profit. It also shows how to classify activities in a cash flow statement and how to prepare and interpret such statements. The limitations of cash flow statements are also explained, in addition to the relationship between working capital and cash flow.

Objectives

On completion of this tutorial you will be able to:

• identify the importance of cash to a business
• prepare a cash flow statement
• interpret a cash flow statement
• identify how entities can maintain a strong liquidity position with proper working capital management

Program Content

Lesson(s):
Analysis of the Cash Flow Statement

Topics:

• An Overview of the Cash Flow Statement
• Preparing a Cash Flow Statement
• Interpreting the Cash Flow Statement
• Working Capital and Cash Flow

Target Audience

• New or recent recruits to banking and financial organizations
• Operations and support staff
• Finance and accounting staff
• Dealers and Traders

Prerequisites

Analysis of the Balance Sheet
Analysis of the Income Statement

Estimated Completion Time : 75 minutes

Registration Information

This short online course can be purchased individually or as part of the following discount scheme(s).

• Financial Accounting 101

Once purchased, you will have access to this course for 365 Days.

Cost:

40.00

UK£ EUR US$   excluding including VAT*

Related CPD Courses

• Accounting An Introduction
• Analysis of the Balance Sheet
• Analysis of the Income Statement
• Financial Statements Ratio Analysis
• Understanding Financial Reports

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