Cash flow statement is based upon
A)Accrual basis of accounting
B)Cash basis of accounting
C)Both a and b
D)None of the above

Question

Quizplus · Accepted Answer

The cash flow statement is based on the cash basis of accounting, focusing on the inflows and outflows of cash and cash equivalents, rather than the accrual basis which recognizes revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Cash Flow Statement Is Based Upon