PDF · Notes
AS 3 Cash Flow Statement Handwritten Notes for CA Inter Advanced Accounting
- Shared by
- Anchal A.
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 3 Nov 2026
Part of: CA InterAdv Accounting
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These handwritten notes cover AS 3 Cash Flow Statement, a topic in CA Inter Advanced Accounting. The first pages introduce which entities must follow the standard, the objective of a cash flow statement, and its benefits as a planning tool. They then list sources and applications of cash, the elements that make up cash, and the three-way classification of cash flow activities. The layout is simple and written by hand, so students who prefer short, step-by-step revision points will find it easy to follow.
What the notes cover
The preview explains the scope of AS 3 and notes that it is mandatory for non-SMC and Level-2 enterprises, while the Companies Act 2013 requires cash flow statements from most companies except one person companies, small companies and dormant companies. It then defines the objective of the statement as a summary of cash payments and receipts over a period. Sources of cash include issue of shares and debentures, sale of investments and fixed assets, and cash from operations. Applications include redemption of shares and debentures, purchase of investments, payment of tax and dividend, and operating losses. The elements of cash are listed as cash in hand, demand deposits in banks and cash equivalents.
How to use them for revision
Use the sources and applications lists to quickly recall which transactions increase or decrease cash before attempting a question. The classification section sets out operating, investing and financing activities with examples such as cash receipts from sale of goods, payments to creditors, refunds of income tax, and receipts or payments on forward and option contracts for trading. Practise sorting each item from a question into one of these three heads. The first three pages are a useful base before moving to the later pages of the note.
Who should read them
These notes suit CA Inter students preparing Advanced Accounting who need a clear handwritten summary of the introductory concepts of AS 3. They are useful for students who find the cash flow statement difficult to start and want to understand the basic terms before working through problems. Readers should note that the preview covers only the first three pages of an eight-page note.
Key topics in these notes
- AS 3 applicability and Companies Act 2013 exemptions
- Objective and benefits of cash flow statement
- Sources and applications of cash
- Elements of cash and cash equivalents
- Classification of cash flow activities
- Operating activities examples
- Investing and financing activities
- cash flow statement
- as 3
- ca inter
- advanced accounting
- accounting standards
- handwritten notes
- operating activities
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Frequently asked questions
Which companies must prepare a cash flow statement under AS 3?
The notes say AS 3 is mandatory for non-SMC and Level-2 enterprises. Under the Companies Act 2013, most companies must prepare it except one person companies, small companies and dormant companies.
What are the elements of cash in AS 3?
The notes list cash in hand, demand deposits in banks and cash equivalents as the elements of cash.
How are cash flow activities classified?
The notes classify them into operating activities, investing activities covering acquisition and disposal of long-term assets and investments, and financing activities that change the size and composition of owner's capital and debt.
Is this cash flow statement note free to read in full?
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