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Business Health: Cash Flow Statements
By completing this module, you will be able to distinguish between cash flow statements, balance statements, and income statements. These lessons will…Preview the first lesson free — get full access to all 5 lessons.
Beginner Provider : Anna Bull 5 Lessons · 11m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
By completing this module, you will be able to distinguish between cash flow statements, balance statements, and income statements. These lessons will demonstrate how each statement benefits your cash flow management. You will learn what goes into a cash flow statement and the direct and indirect methods of cash flow accounting. You will also learn about the concept of liquidity and how it directly affects cash flow.
What You'll Learn
- Distinguish cash flow statements from balance sheets and income statements
- Identify the basic components that go into a cash flow statement
- Apply the direct method of cash flow accounting
- Apply the indirect method of cash flow accounting
- Define the concept of liquidity and how it affects cash flow
- Explain how each financial statement benefits cash flow management
Key Takeaways
- Cash flow statements, balance sheets, and income statements are distinct statements, each benefiting cash flow management in its own way.
- Cash flow accounting can be performed using either the direct method or the indirect method.
- A cash flow statement is made up of specific basic components.
- Liquidity is a concept that directly affects cash flow.
Frequently Asked Questions
What will I be able to do after completing this module?
You will be able to distinguish between cash flow statements, balance statements, and income statements, understand what goes into a cash flow statement, apply the direct and indirect methods of cash flow accounting, and define the concept of liquidity and how it affects cash flow.
What topics does this course cover?
The lessons cover cash flow statements, balance sheets, and income statements; the basic components of a cash flow statement; direct method cash flow accounting; indirect method cash flow accounting; and understanding liquidity.
What skills will I gain from this course?
This course builds skills in cash flow analysis, cash flow improvement, cash flow management, cash flows, cash flow statements, and financial statement analysis.
What is the difference between the direct and indirect methods taught here?
The module covers both the direct method of cash flow accounting and the indirect method of cash flow accounting, and demonstrates how to distinguish between these two methods of cash flow reporting.
