📝 One-liners · 65 cards
Cash Flow and Fund Flow
What is the primary purpose of a Cash Flow Statement?
A Cash Flow Statement shows the actual inflows and outflows of cash and cash equivalents during an accounting period, helping assess the liquidity and solvency of a business.
What is the indirect method of presenting operating cash flows?
Net profit adjusted for non-cash items and working capital changes.
Under which accounting standard is the Cash Flow Statement governed in India?
The Cash Flow Statement is governed by AS-3 (Accounting Standard 3) issued by ICAI, which is mandatory for listed companies and certain other enterprises.
What is the direct method of presenting operating cash flows?
Showing actual cash receipts and payments from operating activities directly.
🔒
Unlock 65 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Cash Flow and Fund Flow.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days