Which of the following statements presents financial information NOT based on accrual accounting?

Question

Quizplus · Accepted Answer

The statement of cash flows presents financial information based on cash accounting, which does not take into account the timing of revenues and expenses but rather only records cash inflows and outflows. The other statements (balance sheet, income statement, and statement of retained earnings) all use accrual accounting, which records revenues and expenses when they are earned or incurred, regardless of when the associated cash flows occur.

Which of the Following Statements Presents Financial Information NOT Based