AS 3 – Cash Flow Statement (Indirect Method) ✍️ Remember the + / −… — Darshan Makwana — TG.ME

📊 AS 3 – Cash Flow Statement (Indirect Method) ✍️ Remember the + / − rules: ❓ Increase in Liabilities = + (Add) ❓ Increase in Assets = − (Less) ❓ Decrease in Liabilities = − (Less) ❓ Decrease in Assets = + (Add) 💡 Exam Trick (Very Important ⚡) In the exam, don’t overcomplicate it. Just follow these steps: 👉 Step 1: Identify whether it is an Asset or Liability 👉 Step 2: Identify whether it is an Increase or Decrease 👉 Step 3: Apply the rule (+ / −) 👉 Step 4 (Final Step): Place it in the correct activity: ○ Operating Activity ○ Investing Activity ○ Financing Activity 🧠 Golden Line (for MCQs + Theory): “Increase in Current Assets is deducted and increase in Current Liabilities is added.” 🎯 Pro Tip: First decide the sign, then decide the activity — this avoids confusion and saves time in exams.