Question
What is accounting standard-3 (revised) associated
with?Solution
AS 3 (Revised) is titled "Cash Flow Statements." It provides guidance on the preparation and presentation of the cash flow statement, which is an important financial statement that shows the inflows and outflows of cash and cash equivalents during a specific period. The cash flow statement classifies cash flows into three categories: operating activities, investing activities, and financing activities. It helps users of financial statements, such as investors, creditors, and management, to assess the company's ability to generate cash, its cash needs, and how it is using and managing its cash resources.
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