Question

Which Accounting Standard governs the preparation of Cash Flow Statement?

• A. AS-3 (Revised)
• B. AS-26
• C. AS-10
• D. AS-16

Answer 1

The Correct Option is A

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.