Chapter 17

Cash Flow Statement


After studying this chapter, you will be able to understand

  1. Meaning of Cash Flow and Cash Flow Statement

  2. Uses of Cash Flow Statement

  3. Limitations of Cash Flow Statement

  4. Classification of Business Transactions into Operating Activities, Investing Activities, and Financing Activities According to Accounting Standard (AS)–3 (Revised)

  5. Preparation of Cash Flow Statement as per AS–3 by Both Direct Method and Indirect Method.

  6. Accounting Treatment of Special Items (Non-cash Expenses and Non-operating Income)

  7. Various Stages Involved in the Preparation of Cash Flow Statement (Six Stages With Illustrations) in Accordance With AS–3 (Revised).


The end product of the accounting process ...

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