Cash flow statement is part of financial statements as per The Companies Act 2013 and prepared in accordance with Accounting Standard............

AS-3

The correct answer is option 2- AS-3.

Cash flow statement is part of financial statements as per The Companies Act 2013 and prepared in accordance with AS-3.

Financial Statements are defined in Companies Act, 2013 (Section 2 (40)] and includes Cash Flow Statement prepared in accordance with Accounting Standard- 3 (AS-3)- Cash Flow Statement. A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities. It requires that an enterprise should prepare a cash flow statement and should present it for each accounting period for which financial statements are presented.