Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Cash Flow Statement is prepared from:
Options:
P and L a/c
Balance Sheet
Additional Information
All of the above
Correct Answer:
All of the above
Explanation:
The cash flow statement measures the performance of a company over a period of time. But it is not as easily manipulated by the timing of non-cash transactions. Thus, Cash Flow Statement is derived from the information presented in the Profit and Loss Account, Balance Sheet, and additional details provided to explain changes in various accounts and activities.