The correct answer is: C. Cash Flow Statement
AS-3 (Accounting Standard-3) is an Indian accounting standard that prescribes the format and content of a cash flow statement. It is applicable to all companies, including companies limited by shares, companies limited by guarantee, and unlimited companies.
A cash flow statement is a financial statement that shows the sources and uses of cash during a period of time. It is prepared using the indirect method, which starts with net profit or loss and adjusts it for non-cash items such as depreciation and amortization.
The cash flow statement is important because it provides information about a company’s ability to generate cash and meet its financial obligations. It is also used by investors and creditors to assess a company’s financial performance and risk.
The other options are incorrect because:
- A balance sheet is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time.
- A funds flow statement is a financial statement that shows the sources and uses of funds during a period of time.
- A consolidated financial statement is a financial statement that shows the financial position and results of operations of a group of companies as if they were a single entity.