{"id":45352,"date":"2024-04-15T21:56:47","date_gmt":"2024-04-15T21:56:47","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45352"},"modified":"2024-04-15T21:56:47","modified_gmt":"2024-04-15T21:56:47","slug":"in-india-which-of-the-following-is-prepared-on-the-guidelines-of-as-3-accounting-standard-3","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-india-which-of-the-following-is-prepared-on-the-guidelines-of-as-3-accounting-standard-3\/","title":{"rendered":"In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?"},"content":{"rendered":"

[amp_mcq option1=”Balance Sheet of a Company” option2=”Funds Flow Statement” option3=”Cash Flow Statement” option4=”Consolidated Financial Statement” correct=”option3″]<\/p>\n

The correct answer is: C. Cash Flow Statement<\/strong><\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

The other options are incorrect because:<\/p>\n