Cash Flow Forecasting Practice Exam

About Cash Flow Forecasting
A cash flow forecast is a projection of an organisations future financial position based on anticipated payments and receivables. The process of deriving a cash flow forecast is called cash flow forecasting.

There are essentially two main types of cash forecasting methods -
•    Direct cash forecasting is a method of forecasting cash flows and balances for short term liquidity management purposes, typically less than 90 days in duration. Direct cash forecasts often but not always include system based cash flows so as to make the cash forecast as close to real time as possible.
•    Indirect cash forecasting is often longer term in nature and it relies on various indirect methods of building up cash forecast such as using projected balance sheets and income statements.

A cash flow forecast shows your projected cash based on income and expenses and is an important tool when it comes to making decisions about activities such as funding, capital expenditure and investments. Cash forecasting can be carried out for a range of time horizons.

Cash Flow Forecasting has gained immense popularity across the globe resulting in huge demand for certified professionals.

Cash Flow Forecasting certified professionals, executives and managers are in high demand in companies across the globe.

Important  Concepts for Cash Flow Forecasting Certificate Exam

• Global Standards for Accounting
• Understanding Financial Statements
• The Accounting Cycle
• Accounting Transactions and Books of Account
• Cash Flow Analysis
• Discounted Cash Flow Method
  
  

Cash Flow Forecasting Certificate Exam  Objectives

Cash Flow Forecasting  exam focuses on assessing your skills and knowledge in concepts and application of cash flow forecasting.

Cash Flow Forecasting Certificate Exam  Exam Pre-requisite

There are no prerequisites for the Cash Flow Forecasting exam. Candidate should be well versed  in cash flow forecasting and management to clear the exam.

Why is Cash Flow Forecasting important?
Forecasting cash position is a top priority for any company, as it helps to
•    stay on top of cash flow
•    prepare for the future
•    make better-informed decisions
•    Indicates a positive or negative cash flow in future
•    Minimize the cash buffer needed for unforeseen expenses
•    make better use of excess cash
•    plan for any expected cash deficits
•    manage financial risk more effectively
•    budget for equipment purchases

Who should take the Cash Flow Forecasting Exam?
•    Professionals and managers working in financial planning, financial analysis, accounting, or finance
•    Business owners
•    Entrepreneurs
•    Professionals in accounting, finance, treasury, and corporate development

Cash Flow Forecasting Certification Course Outline
1. Basic Accounting Principles and Framework
1.1. Learning to Understand Accounting
1.2. Assumptions, Principles, and Conventions of Accounting
1.3. Global Standards for Accounting

2. The Accounting Equation and Financial Statements
2.1. The Accounting Equation
2.2. Double-entry, Debits, and Credits
2.3. Understanding Financial Statements

3. The Accounting Cycle and Accrual Accounting
3.1. The Accounting Cycle
3.2. Chart of Accounts
3.3. Cash and Accrual Accounting

4. Accounting Transactions and Books of Account
4.1. General Journals and Special Journals
4.2. General Ledgers and Subsidiary Ledgers
4.3. Posting Accounting Transactions

5. Cash Flow Analysis
5.1 Cash Flow Analysis Basics
5.2 Cash Drivers
5.3 Cash Flow Statement Structure
5.4 Forecast the cash flow
5.5 Calculate the monthly cash flow
5.6 Discounted Cash Flow Method
5.7 Build up the assumptions and formulas
5.8 Impact on balance sheet and capitalization


Exam Format and Information
Certification name – Cash Flow Forecasting Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199