Course Objective

 Welcome to Part 2 of the 'Money Flow' Module!

This section of our online course will introduce the review and construction of basic financial statements. Part 2 of the Money Flow module is made up of six parts designed to give you a broad understanding of how money flow impacts risk management.

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By the time you are finished with Part 2, you should understand the following:

• Basic financial statements and their component parts
• The distinction between funds recognition in finance and accounting-the accrual versus the cash basis method
• The distinction between book and market values
• Depreciation and depreciation expense as it is used in accounting and finance
• Sources and uses of cash and cash flow categories
• Construction of the Statement of Cash Flows (SOCF) and its use in funds flow analysis
• Appendix 1: MACRS depreciation property classes and related depreciation percentages

 

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