Accounting · Ind AS 7 Cash Flow Statement
Consider the following statements regarding the Cash Flow Statement and its components under Ind AS 7: Statement I: Operating activities represent the principal revenue-generating activities of a firm, and a consistently positive cash flow in this section is a key indicator of fundamental financial health. Statement II: Investing activities include cash flows resulting from changes in the capital structure of the company, such as issuing new equity shares or the payment of dividends to shareholders. Statement III: Ind AS 7 mandates all companies to present a cash flow statement that classifies transactions into three specific categories: Operating, Investing, and Financing activities. Statement IV: When using the indirect method to calculate cash from operations, non-cash charges such as depreciation and amortization are added back to the net profit. Choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement I, Statement II, and Statement III Only
- 2Statement I, Statement III, and Statement IV Only✓
- 3Statement II, Statement III, and Statement IV Only
- 4Statement I, Statement II, and Statement IV Only
Correct answer
Statement I, Statement III, and Statement IV Only
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Ind AS 7 Cash Flow Statement MCQs →Want more practice questions on Ind AS 7 Cash Flow Statement?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Ind AS 7 Cash Flow Statement