Question : Cash Flow statement is based on -
Option 1: Accrual basis of accounting
Option 2: Cash basis of accounting
Option 3: Mixed basis of accounting
Option 4: None of these
Answer (1)
22nd Jan, 2024
Correct Answer: Cash basis of accounting
Solution : The cash basis of accounting is the foundation of the cash flow statement. Operating, investing, and financing operations are the three categories of financial activities that make up the cash flow statement, which is a cash basis report.
Hence the Correct answer is option 2.
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