5 Questions
Which statement shows the sources of cash inflow and uses of cash out-flow of a business concern during a particular period of time?
Cash flow statement
What does the cash flow statement involve?
Short-term financial position of the business concern
Which organization issued the Accounting Standard (AS-3) related to the preparation of the cash flow statement?
Institute of Chartered Accountants of India
What are the three sections of a cash flow statement?
Operating activities, investing activities, and financing activities
What does the operating activities section of the cash flow statement include?
Revenue and expenses
Study Notes
Cash Flow Statement
- The statement that shows the sources of cash inflow and uses of cash out-flow of a business concern during a particular period of time is the Cash Flow Statement.
Involvement of Cash Flow Statement
- The cash flow statement involves the classification of cash flows into three sections: operating, investing, and financing activities.
Accounting Standard (AS-3)
- The Institute of Chartered Accountants of India (ICAI) issued the Accounting Standard (AS-3) related to the preparation of the cash flow statement.
Sections of Cash Flow Statement
- The three sections of a cash flow statement are:
- Operating Activities
- Investing Activities
- Financing Activities
Operating Activities Section
- The operating activities section of the cash flow statement includes cash inflows and outflows from core business operations, such as cash received from customers, cash paid to suppliers, and dividends received.
Test your knowledge on cash flow statements with this quiz! Learn about the sources of cash inflow and uses of cash outflow in a business, as well as how to prepare a cash flow statement. Challenge yourself with questions on operating, investment, and financing cash flows.
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