according to _________ cash flow statement is prepared and presented for the period for which the profit and loss account is prepared
Answers
Answer:
Explanation:
7) According to _________ cash flow statement is prepared and presented for the period for
which the profit and loss account is prepared.
Answer: Accounting Standard 3
Explanation:
According to the Accounting Standard 3 cash flow statement is prepared and presented for the period for which the profit and loss account is prepared
The accounting standard accounts for information about changes in cash and cash equivalents of an entity during a particular period. Such information is disclosed in the cash flow statement indicates cash flows from operating, investing and financing activities during an accounting period.
Cash flow statement is one of the important financial statements as it is prepared along with income statement and balance sheet and This statement is prepared to provide information regarding the cash flows of an enterprise.
These information helps the stakeholders to assess the ability of the enterprise to generate cash and cash equivalents and assessment regarding an entity’s ability to generate cash, its timing and certainty helps the stakeholders in taking various economic decisions.
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