The correct answer is AS- 3Accounting Standards: Accounting Standards can be any form of statement which consists of rules and guidelines, issued by the accounting institutions, for the preparation of uniform and consistent financial statements. This also includes disclosures required by the different users of accounting information. Important PointsList of few Accounting Standards in detail:Policies related to accounting disclosure (AS 1): This standard deals with the disclosure of significant accounting policies that are followed in preparing and presenting financial statements. Valuation of Inventories (AS 2): This standard deals with the determination of value at which inventories are carried in the financial statements, including the ascertainment of cost of inventories and any write-down thereof to net realizable value. Cash Flow Statements (AS 3): This standard deals with the historical changes in cash and cash equivalents of an enterprise. This is done by preparing a statement popularly called Cash Flow Statement. This statement classifies cash flows during the period from operating, investing, and financing activities. Contingencies and Events Occurring After Balance Sheet Date (AS 4): This Standard deals with the treatment of contingencies and events occurring after the balance sheet date. Net profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies (AS 5): This standard should be applied by an enterprise in presenting profit or loss from activities in the normal course of business, extraordinary items, and prior period items. This also includes changes in accounting estimates and changes in accounting policies. Therefore, the Cash flow statement is prepared as per accounting standard As- 3.