Ch 3 · AS-3 Cash Flow Statement

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Cash flows classified into Operating, Investing, Financing activities.
• 2Operating: principal revenue-producing activities (sales, payments to suppliers, taxes).
• 3Investing: purchase/sale of PPE, investments, loans given.
• 4Financing: capital raising, dividends paid, borrowing repayments.
• 5Direct vs Indirect method — only difference in operating section.