FAR 1-14 CPA Review Notes PDF

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Lesson B01 – Sources and Use of Cash  Requirements:  All entities with B/S and I/S for period  Purpose:  Assess ability to generate and control cash inflows/outflows  Probable future ability to generate cash inflows  Likely need for external borrowing Lesson B02 – Operating, Investing, and Financing Activities  Operating Activities – Direct Method  Inflows o From customers o Dividends o Interest received  Outflows o To suppliers o To employees o Interest paid o Income taxes  Investing Activities  Inflows o Sale of L/T assets o Collection of loan principal o Disposal of debt and equity securities o Sale of product assets  Outflows o Purchase of L/T assets o Lending (to others) o Investment in debt and equity securities o Purchase of other productive assets  Debt based on intended purpose of investment  if plan to hold security for short time then operating  Financing Activities  Inflows o Sale of own (Treasury) stock o Proceeds from borrowing  Outflows o Repurchase own (Treasury) stock o Paying back lenders (principal only) o Payment of dividends Lesson B03 – Operating Cash Flows – Indirect Method

 Lesson B04 – Notes to Financial Statements  Lesson B05 – Risks and Uncertainties  Lesson B06 – Subsequent Events  Lesson B07 – Exit or Disposal Activities and Discontinued Operations  Lesson B08 – Ratios – Liquidity/Solvency and Operational  Lesson B09 – Profitability and Equity ...