The correct answer is: A. I, II and III.
Cash flow statement is a financial statement that shows how much cash a company has received and spent over a period of time. It is divided into three sections: operating activities, investing activities, and financing activities.
Operating activities are the day-to-day activities of a business, such as selling goods and services. Investing activities are the purchase and sale of long-term assets, such as property, plant, and equipment. Financing activities are the raising and repaying of money, such as borrowing from banks or issuing shares.
The cash flow statement is important because it shows how a company is generating cash and using it. It can be used to assess a company’s financial health and its ability to pay its debts.
Option I: Cash flow from borrowing activities. This is the cash that a company receives from borrowing money, such as from banks or issuing bonds.
Option II: Cash flow from operating activities. This is the cash that a company generates from its core business activities, such as selling goods and services.
Option III: Cash flow from financing activities. This is the cash that a company uses to finance its operations, such as by borrowing money or issuing shares.
Option IV: Cash flow from investing activities. This is the cash that a company uses to invest in long-term assets, such as property, plant, and equipment.
Option V: Cash flow from miscellaneous activities. This is a catch-all category for any cash flows that do not fit into the other four categories.
According to Accounting Standard-3, cash flow statement should show separately cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.