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

Question

Quizplus · Accepted Answer

The statement of cash flows is based on the measurement of cash and cash equivalents, which represent the inflows and outflows of cash during a period. It does not use accrual, net present value, or market value measurements.

The Basis of Measurement Used in the Statement of Cash