As per AS-3 (Cash Flow Statements), the standard format of Cash Flow Statement follows a specific sequence:
Cash flow from Operating Activities (D) appears first as it shows cash generated from the core business operations.
This is followed by Cash flow from Investing Activities (C), which shows cash flows from purchase and sale of long-term assets.
Next comes Cash flow from Financing Activities (B), which reflects cash flows from transactions with owners and creditors.
Finally, Cash and Cash Equivalents (A) is shown at the end, representing the net effect of all three activities on the closing cash balance.
The standard format is:
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net Increase/Decrease in Cash and Cash Equivalents
Add: Opening Cash and Cash Equivalents
Closing Cash and Cash Equivalents
Therefore, the correct sequence is (D), (C), (B), (A).
Correct Answer: Option 1