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Questions and Answers
Which statement shows the sources of cash inflow and uses of cash out-flow of a business concern during a particular period of time?
Which statement shows the sources of cash inflow and uses of cash out-flow of a business concern during a particular period of time?
- Balance sheet
- Statement of retained earnings
- Income statement
- Cash flow statement (correct)
What does the cash flow statement involve?
What does the cash flow statement involve?
- Long-term financial position of the business concern
- Short-term financial position of the business concern (correct)
- Both long-term and short-term financial positions of the business concern
- None of the above
Which organization issued the Accounting Standard (AS-3) related to the preparation of the cash flow statement?
Which organization issued the Accounting Standard (AS-3) related to the preparation of the cash flow statement?
- Institute of Chartered Accountants of India (correct)
- Financial Accounting Standards Board (FASB)
- International Financial Reporting Standards (IFRS)
- Securities and Exchange Commission (SEC)
What are the three sections of a cash flow statement?
What are the three sections of a cash flow statement?
What does the operating activities section of the cash flow statement include?
What does the operating activities section of the cash flow statement include?
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.
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Description
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.
