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Complete a 2-part assessment in which you classify cash inflows and outflows and prepare a cash flow statement.
The balance sheet and income statement do not necessarily show a complete picture of the financial condition of an organization. In most organizations cash is king, and without a sizable amount of cash, an organization can become insolvent (that is, not having enough ready cash to meet its current obligations or purchase merchandise or materials). When this happens, creditors, bankers, and other external stakeholders (people and organizations that have a vested interest in the survival of a business) might become impatient and force the business into bankruptcy.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Define accounting and its application to accounting principles.
Analyze accounting data to classify cash inflow and outflows.
Competency 2: Apply accounting cycle strategies to manage business financial events.
Apply the appropriate activity for each business transaction.
Competency 3: Prepare financial statements from accounting system data.
Prepare a cash flow statement using appropriate financial data.
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