Cash flow statement helps in which form of financial planning?

The correct answer is Option (2) → Short-term

A cash flow statement shows where cash came from and where it went during a period. Knowing the likely cash inflows and outflows of the coming months, management can arrange for a shortage or invest a surplus in time, so the statement is chiefly a tool of short-term financial planning and cash management. Long-term planning rests on budgets, capital structure and project appraisal.

Note: This topic is not covered in any edition of the NCERT Accountancy textbook.