Question

As per which accounting standard, cash flows exclude movements between items that constitute cash or cash equivalents?

Options

• AS-3

• AS-4

• AS-5

• AS-7

Answer 1

AS-3

Explanation:

According to AS 3, cash flows do not include movements between items that are cash or cash equivalents because they are part of an enterprise's cash management rather than its operating, investing, or financing activities.