According to which of the following categories of activities, a cash flow statement should be prepared…
According to Accounting Standard 3 (AS-3, Cash Flow Statements), a cash flow statement must report cash flows during the period classified into exactly three categories:…
Choose your answer
According to which of the following categories of activities, a cash flow statement should be prepared as per AS-3 ?
I. Cash flow from operating activities
II. Cash flow from investing activities
III. Cash flow from financing activities
IV. Cash flow from production activities
V. Cash flow from selling activities
Answer and explanation
Correct answer A
According to Accounting Standard 3 (AS-3, Cash Flow Statements), a cash flow statement must report cash flows during the period classified into exactly three categories: operating activities (I), investing activities (II), and financing activities (III). Production and selling activities are subsumed within operating activities.
Practice for these exams
-
UGC NET Commerce