Which statement presents financial information not based on accrual accounting?
A)Balance Sheet
B)Income Statement
C)Statement of Cash Flows
D)Statement of Retained Earnings

Question

Quizplus · Accepted Answer

The Statement of Cash Flows presents financial information based on cash accounting, which only reflects transactions that involve the exchange of cash. It does not take into account accruals or non-cash transactions. The Balance Sheet, Income Statement, and Statement of Retained Earnings are all based on accrual accounting.

Which Statement Presents Financial Information Not Based on Accrual Accounting