Question

Which accounting standard is related to cash flow statement?

• A. Accounting standard - 03
• B. Accounting standard - 13
• C. Accounting standard - 23
• D. Accounting standard - 33

Hint:

For cash flow statements, always refer to Accounting Standard - 03, which provides clear guidelines for its preparation.

Answer 1

The Correct Option is A

Step 1: Identifying the relevant accounting standard.
Accounting Standard (AS) - 03 specifies the guidelines for preparing and presenting a cash flow statement. It outlines the classification of cash flows into operating, investing, and financing activities.

Step 2: Differentiating between accounting standards.
Other standards, such as AS-13 (Investments) and AS-23 (Associates in Consolidated Financial Statements), are unrelated to the cash flow statement. AS-33 deals with earnings per share.