Question

State whether the following is True or False:

The financial statements of a business enterprise include cash flow statement.

Answer 1

This statement is true.

Explanation:

According to Section 2(40) of the Companies Act, 2013, a full set of financial statements must include:

1. Balance Sheet
2. Statement of Profit and Loss
3. Cash Flow Statement
4. Statement of Changes in Equity
5. Explanatory Notes