Accounting · Cash Flow Statement
Consider the following statements regarding Cash Flow Statement preparation (AS-3 / Ind AS 7): Statement I: Non-cash expenses such as depreciation and amortization must be added back to net profit to calculate cash flow from operating activities. Statement II: An increase in current assets (excluding cash and cash equivalents) is treated as a cash inflow and added to operating profit. Statement III: Dividend paid by a non-financial company is classified as a Financing Activity, whereas interest received on investments is classified as an Investing Activity. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III
- 2Only I and III✓
- 3Only I and II
- 4Only I
Correct answer
Only I and III
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