Question

According to IRDA regulations, which method should be used for preparing the cash flow statement in an insurance company?

a.

Indirect Method

b.

Direct Method

c.

Modified Method

d.

Hybrid Method

Answer: (b).Direct Method Explanation:According to IRDA regulations, the cash flow statement in an insurance company should be prepared using the Direct Method, and Accounting Standard 3 (Cash-flow Statement) is not applicable in this context.

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Q. According to IRDA regulations, which method should be used for preparing the cash flow statement in an insurance company?

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