GK
ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
AS -3 - Cash Flow Statement
|
|
|
AS - 4 - Contingencies and Events occurring after the Balance Sheet date
|
|
|
AS - 2 (Revised) - Valuation of inventories
|
|
|
AS - 1 - Disclosure of accounting policies
|
Detailed explanation-1: -AS 3 Cash Flow Statements states that cash flows should exclude the movements between items which forms part of cash or cash equivalents as these are part of an enterprise’s cash management rather than its operating, financing and investing activities.
Detailed explanation-2: -AS-3 (Revised) Accounting Standard becomes mandatory for commercial, industrial and business reporting enterprises whose turnover for accounting periods exceeds ₹50 crore for accounting periods beginning 1 April 2001.
Detailed explanation-3: -The total amount of interest paid during the period is disclosed in the cash flow statement whether it has been recognised as an expense in the statement of profit and loss or capitalised in accordance with Accounting Standard (AS) 10, Accounting for Fixed Assets.
Detailed explanation-4: -The amount received from purchasing activities is not included in the cash flow statement. Hence, it is the correct option.