The basis of measurement used in the statement of cash flows is:
A) accrual.
B) current value.
C) net present value.
D) cash and cash equivalents.

Question

Quizplus · Accepted Answer

The basis of measurement used in the statement of cash flows is cash and cash equivalents, meaning the amounts are reported in terms of actual cash received or disbursed during the period. This is because the statement of cash flows is meant to provide information about the company's cash inflows and outflows, rather than its accruals or current values.

The Basis of Measurement Used in the Statement of Cash