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

Accounting Standard (AS)-3 (Revised) governs the preparation of the Cash Flow Statement.

• AS-3 (Revised) specifically addresses the preparation of Cash Flow Statements. It details how to report cash inflows and outflows and categorizes cash flows into operating, investing, and financing activities.

Additional relevant standards include:

• AS-26, which concerns Intangible Assets.
• AS-10, related to Property, Plant, and Equipment.
• AS-16, which covers Borrowing Costs.

Therefore, the accurate choice is (A): AS-3 (Revised).