The term "financial statement" does not include a statement of cash receipts and disbursements, because this type of presentation violates the required use of accrual accounting under GAAP.

Question

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The term "financial statement" does include a statement of cash receipts and disbursements, known as the cash flow statement, which is one of the key financial statements required under GAAP and does not violate accrual accounting principles.

The Term "Financial Statement" Does Not Include a Statement of Cash