All financial statements are prepared on an accruals basis except the:
A)statement of comprehensive income
B)statement of financial performance
C)statement of cash flows
D)statement of changes in equity

Question

Quizplus · Accepted Answer

The statement of cash flows is prepared on a cash basis, not an accruals basis. The purpose of the statement of cash flows is to provide information about the inflows and outflows of cash during a period, rather than information about revenues and expenses recognized during a period.

All Financial Statements Are Prepared on an Accruals Basis Except