Practicing Success
Practicing Success
CUET Preparation Today
| The preparation of the cash flow statement is: |
Mandatory Recommendatory Depending on the company's wish None of these |
| Mandatory |
| Financial statements of companies are prepared following the accounting standards prescribed in the companies Act, 2013. Accounting Standards are notified under section 133 of the Companies Act, 2013 vide Accounting Standards Rules, 2006, and are mandatory in nature. Companies Act, 2013 also specifies that if the accounting standards are not followed, financial statements will not be true and fair, which is a quality of financial statements. Financial Statements are defined in Companies Act, 2013 (Section 2 (40)] and include Cash Flow Statement prepared in accordance with Accounting Standard- 3 (AS-3)- Cash Flow Statement. |
