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Identify the right sequence of Cash-flow statement as per Accounting Standards 3.
A. Cash Equivalents
B. Cash Flow from Investing Activity
C. Cash Flow from Operating Activity
D. Cash Flow from Financing Activity
Choose the most appropriate answer from the options given below:
  • a)
    C, B, D, A
  • b)
    A, B, C, D
  • c)
    C, A, B, D
  • d)
    C, B, A, D
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Identify the right sequence of Cash-flow statement as per Accounting S...
The correct sequence of the Cash-flow statement as per Accounting Standards 3 is: C, B, D, A

The cash flow statement is divided into three main sections:

C. Cash Flow from Operating Activity:
  • This section shows the cash inflows and outflows related to the main business operations of the company. It includes cash received from customers, cash paid to suppliers and employees, interest and taxes paid, and other operating activities.
B. Cash Flow from Investing Activity:
  • This section shows the cash inflows and outflows related to the company's investments in assets and securities. It includes the purchase and sale of property, plant, and equipment, investments in other companies, and other investing activities.
D. Cash Flow from Financing Activity:
  • This section shows the cash inflows and outflows related to the company's financing activities. It includes cash received from issuing shares or borrowing money, and cash used to repay loans, pay dividends, or buy back shares.
A. Cash Equivalents:
  • This section shows the cash and cash equivalents held by the company at the beginning and end of the reporting period. Cash equivalents are short-term, highly liquid investments that are easily convertible to cash and have a low risk of changes in value.

So, the correct sequence is Cash Flow from Operating Activity (C), Cash Flow from Investing Activity (B), Cash Flow from Financing Activity (D), and Cash Equivalents (A).
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Identify the right sequence of Cash-flow statement as per Accounting Standards 3.A. Cash EquivalentsB. Cash Flow from Investing ActivityC. Cash Flow from Operating ActivityD. Cash Flow from Financing ActivityChoose the most appropriate answer from the options given below:a)C, B, D, Ab)A, B, C, Dc)C, A, B, Dd)C, B, A, DCorrect answer is option 'A'. Can you explain this answer?
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