Arrange the following items in the chronological order in which they appear in a Cash Flow Statement as per Accounting Standard-3 (AS-3):(A) Investing activities(B) Operating activities(C) Financing Activities(D) Cash and cash equivalentsChoose the correct answer from the options given below:
- A(B), (A), (C), (D)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
According to AS-3, cash inflows and outflows are presented in the following standardized structured format:Cash Flows from Operating Activities (B)Cash Flows from Investing Activities (A)Cash Flows from Financing Activities (C)Net Increase/Decrease followed by opening and closing balances of Cash and cash equivalents (D)Hence, the correct presentation layout order is (B), (A), (C), (D).