FNST - Cashflow statments

JaneF Registered Posts: 14 New contributor 🐸
Hi All,

Just wondered has anyone ever seen or had a question in the CBT on the direct method of cash flow statements? I've not come accross it but it is mentioned in the Kaplan text book,



  • nonmugglesue
    nonmugglesue Registered Posts: 39 Regular contributor ⭐
    One of the online practice papers has a cashflow statement, otherwise there is normally a couple of multiple choice questions
  • allison24
    allison24 Registered Posts: 2 New contributor 🐸
    Hi Jane

    I take it your studying level 4? I too am studying this at the moment. Having trouble with consolidated statements at the minute, just can't get my head around it. Are you studying at college? I'm a distance learner so finding it really hard. Would be great to be in touch with someone studying the same level.
  • Daz1865
    Daz1865 Registered Posts: 67 Regular contributor ⭐
    I have my financial statements exam on Thursday. It is probably the most difficult exam so far :glare:

    I've only just got cash flows today, for some reason it wasn't sinking in before.
  • AuntieT
    AuntieT Registered Posts: 96 Regular contributor ⭐
    Daz1865 wrote: »

    I've only just got cash flows today, for some reason it wasn't sinking in before.

    Agree - I just couldn't get it, right up until two days before exam. Then the flash bulb moment! My partner of many years was shocked to see, there were tears (not been seen before) because of the relief!

    What had prompted the flash bulb?

    I act as Treasurer for the Management company for my block of flats and had just finished doing the Bank Statement Reconciliation for the previous (few) months. And suddenly "got it", it's all about the change not the bottom line number.

    As soon as I started not to think about the accounts as P&L or Balance sheets, but to pretended to explain to someone why the bank balance had dropped by £3k and I was happy with our position- it made sense!

    In that case it was that more than a few residents had paid in outstanding monies and we'd had lots of work done on the block. So in this case money in meant more money out, as had the cash to do the improvements rather than have a balance sheet full of debtors!

    I think understanding the cash flow statement is about finding something in your personal life to relate it to.

    Hope that helps

    Good Luck
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