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 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 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 : 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 : Which of the following statements is incorrect?

Option 1: Cash Flow Statement is not a substitute for Income Statement

Option 2: Cash Flow Statement shows only the inflows and outflows of Cash

Option 3: Income Statement shows both cash and non-cash items of revenue nature

Option 4: None of the above