Question : As per AS - 3 cash flow statement is mandatory to -
Option 1: All companies
Option 2: One person company
Option 3: Small company
Option 4: Dormant company
Correct Answer: All companies
Solution : All businesses are required to prepare cash flow statements, however the statute also lists several businesses that are excluded from doing so. One Person Companies (OPCs), Small Companies, and Dormant Companies are a few examples.
Hence the correct answer is option 1.
Question : Which of the following statements about the statement of cash flow is not correct?
Option 1: Cash flow statement is part of financial statement
Option 2: Cash flow statement is prepared on cash basis of accounts
Option 3: Cash flow statement is substitute of cash account
Option 4: Cash flow reports are generally prepared at the end of the accounting year
Question : Cash Flow Statement is prepared according to the___________.
Option 1: AS-3
Option 2: Revised AS-3
Option 3: AS-6
Option 4: AS-10
Question : The cash flow statement begins with the :
Option 1: Cash Flow from Investing activity
Option 2: Cash flow from Financing activity
Option 3: Cash flow from Operating activity
Option 4: None of the above
Question : The cash flow statement begins with :
Option 1: Cash Flow from Operating Activities
Option 2: Cash Flow from Financing Activities
Option 3: Cash Flow from Investing Activities
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile