alleryWhich Indian accounting standard deals with the cash flow statement?
- AS-1
- AS-10
- AS-4
- AS-3
Show answer and solution
Correct answer: D. AS-3
AS-3 is the standard that prescribes how companies prepare and present their cash flow statement.
AP Intermediate 2nd Year Cash Flow Statement — practice questions
Explore 50 free Cash Flow Statement questions in AP Intermediate 2nd Year Accountancy. Open each question or exercise to read its content, reference answers and available explanation.
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Showing questions 1–30 of 50.
Which Indian accounting standard deals with the cash flow statement?Read the answer and worked solution →A cash flow statement shows the inflow and outflow of which items?Read the answer and worked solution →Under AS-3, how many categories are cash flows classified into?Read the answer and worked solution →Which of these is NOT a category used in a cash flow statement?Read the answer and worked solution →As per AS-3, cash comprises cash in hand and which other item?Read the answer and worked solution →Cash equivalents are best described as which type of investments?Read the answer and worked solution →An investment normally qualifies as a cash equivalent if its maturity is at most how long?Read the answer and worked solution →Which item is excluded from cash equivalents unless it is substantially one?Read the answer and worked solution →Buying cash equivalents with spare cash appears how in the statement?Read the answer and worked solution →Operating activities are the principal activities that do what for an enterprise?Read the answer and worked solution →For a garment maker, which is an operating activity?Read the answer and worked solution →Receipts of royalties, fees and commissions are classed under which activity?Read the answer and worked solution →Cash paid to suppliers for goods and services is which type of flow?Read the answer and worked solution →Payments made to and on behalf of employees are shown under which activity?Read the answer and worked solution →Cash flows from purchase and sale of trading securities are classified as what?Read the answer and worked solution →Investing activities relate to acquisition and disposal of which items?Read the answer and worked solution →Cash received from disposal of fixed assets is which kind of flow?Read the answer and worked solution →For a non-financial company, interest received is classified under which activity?Read the answer and worked solution →For a non-financial company, interest and dividends paid are classified as what?Read the answer and worked solution →Cash advances and loans made to third parties by a manufacturing firm are which flow?Read the answer and worked solution →Financing activities change the size and composition of what?Read the answer and worked solution →Which is a cash inflow from financing activities?Read the answer and worked solution →Separate disclosure of financing flows helps predict what?Read the answer and worked solution →Redemption of preference shares is shown under which activity?Read the answer and worked solution →Purchase of goodwill for cash is classified under which activity?Read the answer and worked solution →Purchase of shares is an operating activity for which kind of firm?Read the answer and worked solution →Loss due to theft, flood or earthquake is an example of which item?Read the answer and worked solution →How are cash flows from extraordinary items shown in the cash flow statement?Read the answer and worked solution →Tax on operating profit is classified under which activity?Read the answer and worked solution →Tax paid on dividend is classified together with which flow?Read the answer and worked solution →
Worked practice questions
A cash flow statement shows the inflow and outflow of which items?
- Debtors and creditors
- Profits and reserves
- Assets and liabilities
- Cash and cash equivalents
Show answer and solution
Correct answer: D. Cash and cash equivalents
Its subject matter is the movement of cash and cash equivalents over a period, not profit or balances.
Under AS-3, how many categories are cash flows classified into?
- Two
- Four
- Three
- Five
Show answer and solution
Correct answer: C. Three
AS-3 groups all cash flows into operating, investing and financing activities, which makes three.
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