Arrange the following structural parts/sections in the standard order of presentation followed while preparing a Cash Flow Statement from top to bottom:(A) Cash and cash equivalents (Closing/Net Change balancing summary)(B) Investing activity(C) Operating Activity(D) Financing activityChoose the correct answer from the options given below:
- A(C), (B), (A), (D)
- B(D), (B), (C), (A)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
As mandated by AS-3, cash movements must be grouped and organized sequentially in this specific order:Cash Flows from Operating Activities (C)Cash Flows from Investing Activities (B)Cash Flows from Financing Activities (D)Reconciliation resulting in Net Increase/Decrease in Cash and cash equivalents added to opening balances to yield closing balances (A)Therefore, the correct order is (C), (B), (D), (A).