Which statement is not correct?
A)The balance sheet accumulates accruals and deferrals required by accrual accounting.
B)Financial statements under cash accounting are less complicated than those under accrual accounting.
C)The cash flow statement reports accounting performance under accrual accounting.
D)Financial statements under accrual accounting are more time consuming to prepare than those under cash accounting.

Question

Quizplus · Accepted Answer

The cash flow statement reports actual cash inflows and outflows, regardless of whether they were recognized in the income statement under accrual accounting. Therefore, it does not report accounting performance under accrual accounting.

Which Statement Is Not Correct