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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


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 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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