Question
Accountancy Question on Financial Statements Analysis
Which Accounting Standard governs the preparation of Cash Flow Statement?
A
AS-3 (Revised)
B
AS-26
C
AS-10
D
AS-16
Answer
AS-3 (Revised)
Explanation
Solution
The preparation of Cash Flow Statements is governed by Accounting Standard 3 (AS 3 Revised). This standard outlines the requirements for presenting information about the historical changes in cash and cash equivalents of an entity by means of a cash flow statement, which classifies cash flows into operating, investing, and financing activities.