Question : Cash Flow Statement is based Upon :
Option 1: Accrual basis of accounting
Option 2: Cash basis of accounting
Option 3: Accounting equation
Option 4: None of the above
Answer (1)
18th Jan, 2024
Correct Answer: Cash basis of accounting
Solution : Since the cash flow statement primarily depicts the movement of cash, it is based on the cash basis of accounting.
Hence the correct answer is option 2.
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