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
Correct Answer: Revised AS-3
Solution : Answer = Revised AS-3
The cash flow statement is prepared according to the Accounting standard revised AS-3. This standard provides guidelines for presenting a company's cash flows from operating, investing, and financing activities, enhancing transparency and comparability in financial reporting. Hence, the correct option is 2.
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 : 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
Question : Cash-flow statement is prepared for a______________.
Option 1: Past period
Option 2: Future period
Option 3: Both 1 and 2
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