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Overview

Cash-to-Accrual Accounting Course Overview

Cash is king? Not when it comes to accrual information! Learn why cash-only information presents an incomplete picture for many users of financial data and how professionals work under such circumstances.


Financial decisions are often based on accrual information, including accounts receivable that generate credit sales, inventory production for future sales, and accounts payable that describe contractual obligations. These are not readily visible using cash-only data, so we must adjust from cash to get accrual-like information. With the adjustments, we may understand a company’s economics better when assessing financial performance. Accrual accounting, rather than cash accounting, generates an accrual income — the bottom line we care about.


We will use the adjustment principle and approach the steps necessary to convert from cash to accrual data. By experiencing the practice of taking cash-based accounting data and bringing it closer to accrual information, we can paint a suitable picture for financial decision-making.
   

Cash-to-Accrual Learning Objectives

Upon completing this course, you will be able to:
  • Differentiate the rationale for using cash and accrual information
  • Establish the approach to convert cash receipts and disbursements to relevant accrual data
  • Practice and adjust assets, liabilities, revenues, and expenses to get cash statements closer to an equivalent set of accrual statements
  • Link the different financial statements and distinguish their differences when looking at financial metrics
                      

Who Should Take This Course?

This course is for all general business owners who work with lenders and financial professionals working with prospects and clients who rely on cash-based statements.



Cash-to-Accrual Accounting

Get Started

Level 2

Approx 2h to complete

100% online and self-paced

Get Recognized With CFI

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What you'll learn

Lesson
Multimedia
Exams
Files
Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Commercial Banking & Credit Analyst (CBCA)® Certification
Cash-to-Accrual Accounting is part of the Commercial Banking & Credit Analyst (CBCA)® certification, which includes 59 courses.
  • Skills Learned Financial Analysis, Credit Structuring, Risk Management
  • Career Prep Commercial Banking, Credit Analyst, Private Lending

What our students say

Great and happy to learn
This course is great. It teaches us the basic accounting method and adjustment from cash to accrual. It's quite tricky and hard when we try to adjust the different accounting method. But once we understand, it's very helpful in real world

Arvin winatha

Best Financing Learning Platform
CFI is the best platform; many have created courses, but you really feel the value they added to financial teaching. Great Work CFI!

Yaseen Ghori

Brief and understandable
This course is brief and understandable, on how cash-based method and accrual-based accounting differ from one another.

Atinafu Asefa

Brief and understandable
This course is brief and understandable, on how cash-based method and accrual-based accounting differ from one another.

Atinafu Asefa

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