Question : Cash Flow Statement by Indirect Method is prepared on the basis of ___________.

Option 1: Balance sheet

Option 2: Profit and loss account

Option 3: Both 1 and 2

Option 4: None of the above

Question : Cash Flow Statement is historical in nature because it is prepared on the basis of Profit and Loss Account and Balance Sheet, which is based on past transactions.

Option 1: Correct

Option 2: Incorrect

Option 3: Both A and B

Option 4: None of the above

Question : Cash Flow Statement is historical in nature because it is prepared on the basis of Profit and Loss Account and Balance Sheet, which is based on past transactions.

Option 1: Correct

Option 2: Incorrect

Option 3: Both A and B

Option 4: None of the above

Question : The accounting standard prescribes that Cash Flow Statement be prepared either by

Option 1: Direct Method

Option 2: Indirect Method

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

Question : The accounting standard prescribes that Cash Flow Statement be prepared either by

Option 1: Direct Method

Option 2: Indirect Method

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2