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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

If a machinery is purchased, how will it be treated while preparing the cash flow statement as per AS-3 (Revised)?

  1. A
    Purchasing activity
  2. B
    Investing activity
  3. C
    Financing activity
  4. D
    Operating activity

Solution & Step-by-step Explanation

Purchase of fixed assets like machinery represents cash outflow for investing activities according to AS-3.

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If a machinery is purchased, how will it be treated while preparing the cash flow statement as per AS-3 (Revised)?
A
Purchasing activity
B
Investing activity
C
Financing activity
D
Operating activity

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Financial StatementsCash Flow

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