Question : The accounting standard prescribes that Cash Flow Statement be prepared either by
Option 1: Direct Method
Option 2: Indirect Method
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2

Question

Question : The accounting standard prescribes that Cash Flow Statement be prepared either by

Option 1: Direct Method

Option 2: Indirect Method

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

Team Careers360 · Accepted Answer

Correct Answer: Both 1 and 2

Solution : Answer = Both 1 and 2

The accounting standard prescribes that the Cash Flow Statement be prepared using either the Direct Method, which lists actual cash inflows and outflows, or the Indirect Method, which adjusts net income for non-cash items.
Hence, the correct option is 3.

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Question : The accounting standard prescribes that Cash Flow Statement be prepared either byOption 1: Direct MethodOption 2: Indirect MethodOption 3: Both 1 and 2Option 4: Neither 1 nor 2

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Question : The accounting standard prescribes that Cash Flow Statement be prepared either by
Option 1: Direct Method
Option 2: Indirect Method
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2

Question : Statement 1: In management accounting, data from cost accounting and financial accounting are both used.
Statement 2: Therefore, a suitable system is required to combine cost accounts and financial accounts.

Question : Statement 1: By integrating and automating all business processes, computerised accounting system benefits all firms.
Statement 2: These tasks could include production, inventory management, sales, and financing.

Question : Statement 1: For efficient analysis and interpretation, the financial accounting data is categorised and codified.
Statement 2: The accounts are categorised according to their nature.